The building of the National Bank of Ukraine, archival photo
The national Bank of Ukraine (NBU) approved a number of new minor monetary relief for banks and their customers due to the presence of favourable conditions in the interbank market. This was reported on the website of the regulator.
“The national Bank of Ukraine continued to gradually soften temporary restrictions on the foreign exchange market, given the favorable conditions on the interbank market. At this time, the weakening is made for banks and their clients”, – is told in the message.
Thus, the national Bank allowed banks authorized to carry out on the stock exchanges of their own operations with derivative financial instruments (derivatives) whose underlying asset is a foreign currency or its exchange rate. This will expand the list of available operations with foreign currency, will allow to hedge currency risks and thus reduce pressure on the interbank foreign exchange market.
NBU also allowed banks-participants of the international payment systems to buy and transfer foreign currency on the basis of individual licenses of the NBU, if the goal is a security Deposit in foreign currency accounts of international payment systems outside of Ukraine.
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“Today, a legal entity can buy and list on the basis of individual license foreign currency in the amount of 50 thousand US dollars in the equivalent per calendar month. As a result, banks will be able to meet its obligations to the international payment systems and to provide customers with calculations with use of payment cards of international payment systems (VISA, MasterCard)”, – said the Agency.
In addition, the NBU has established the same for all banks, the period bringing the total long open foreign exchange position in accordance with the value of the set limit. Still banks for this is granted for 1 year, during which the Bank must implement agreed to the NBU action plan for the elimination of exceeding the limit. From now on, banks will be able to implement a plan of activities until January 1, 2019.
National Bank has also expanded opportunities for clients of banks-residents to buy foreign currency on the interbank market. Today, they can carry out such operations only provided that the balance of own foreign currency funds is less than 25 thousand U.S. dollars (equivalent). NBU extended the list of exceptions that do not count towards such rest. Now when it is calculated in the account will not be taken means that there is still the client’s account, but will be used on the day of purchase of foreign currency for making payments based on the payment orders that do not require inclusion in the corresponding registers. As to remainders will not be included funds which, together with the purchased currency will be used for the implementation of commitments for operations on import of goods.
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“According to the NBU Board, these exemptions will not prevent positive trends on the currency market as a whole, except for short-term periods of turbulence, are observed from the end of September thanks to the favorable external economic conditions”, – summed up in Department.
The relevant amendments were approved by the NBU Board resolution of November 22, 2016 № 402 “About modification of the resolution of Board of National Bank of Ukraine from September 14, 2016 No. 386”. They take effect from 23 November 2016 and are valid until the expiration of the current anti-crisis resolution № 386, that is, until 15 December 2016.
Earlier it was reported that Ukraine has a good chance to get the next tranche of the International monetary Fund (IMF) in the case of the adoption of the budget for 2017 in the near future.
We will remind, the IMF mission which was in Ukraine from 3 to 17 November to discuss the third review of the extended Fund (EFF), led by Ron van Rudenok, summed up the results of the work. The IMF noted that the economic recovery of Ukraine, but to achieve growth will not be easy.
In addition, the Fund announced that they expect from the Ukrainian authorities imposed on high-ranking corrupt officials.