The National Bank of Ukraine (NBU) announced Tuesday it has approved multiple decisions designed to stabilize the monetary market after recommendations from its Monetary Policy Committee (MPC).
In addition to administrative restrictions currently in place, beginning Wednesday the policy rate would rise to 30 percent per year in order to better regulate the national banking system's liquidity. While the costs of stabilization loans given to banks will remain steady, there will be a proposed higher minimum reserve requirement for banks.
The NBU report states that the requirements will increase by approximately $490 million between March 11 and April 10. Bank officials say this will be a difficult goal to reach, so banks will be allowed to count all cash balances in hyrvnia rather than the 50 percent restriction currently in place. This change will be in effect beginning March 10.
The third measure is the use of indicating numbers to gauge performance with regard to agreements made with the International Monetary Fund.
The MPC's next meeting is March 25.