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Tuesday, August 22, 2017

National Bank of Ukraine's regulatory action improves foreign exchange market

As political turmoil continues to grip Ukraine, the board of the National Bank of Ukraine passed Resolution No. 104 on Feb. 27, amending NBU Board Resolution No. 49, dated Feb. 6, which optimized, clarified and extended prompt action taken with the aim of stabilizing the foreign exchange market.

Current data suggests that the action taken had a positive impact on the market. In particular, the foreign exchange market has shown clear signs of improvement. The net supply of foreign currency on the cash foreign exchange market on Feb. 28 alone amounted to $117 million.

A gradual improvement in market expectations comes amid positive signals that Ukraine is receiving from the international community regarding its willingness to give financial aid to Ukraine to help stabilize the monetary market and to restore its health.

The U.S. and the European Union have offered millions of dollars of loan guarantees and financial assistance to Ukraine in the past week.