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Thursday, January 18, 2018

Ukraine, China implement $2.44 billion currency swap

The National Bank of Ukraine (NBU) said on Thursday that Ukraine and the People's Republic of China have agreed to a currency swap of approximately $2.44 billion.

NBU Governor Valeriia Gontareva said this agreement between the bank and China would allow for a large amount of governmental support for Ukraine's private sector. Such foreign economic operations also stand to lessen risks in the foreign exchange markets. She said the swap also will lessen demand for foreign currencies from importers and would increase in-flows of investments.

The implementation of the agreement took place during the World Economic Forum recently in Davos, Switzerland.

“The move will contribute to stabilizing the economic situation and reducing the demand for foreign exchange from importers. Once the situation is back on track with the support from our foreign donors and partners, we expect the hryvnia currency to appreciate in a mid-term perspective," Gontareva said.

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National Bank of Ukraine

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