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Saturday, October 20, 2018

NBU issues extention on stabilization measures for money and foreign exchange markets

The National Bank of Ukraine (NBU) announced on Wednesday that measures intended to stabilize the foreign exchange market will be extended for three months.

Within the extension decision, there has been an addition that affects the execution of operations of banks in the exchange market. 

Under the provisions, banks are barred from extending loans in domestic currency if foreign currency is used as collateral against these loans and prevents banks from purchasing foreign exchange in order to satisfy a client that is a legal or corporate entity if current foreign exchange holdings exceed $10,000.

It prohibits the execution of foreign exchange activity by selling banking metals for non-cash amounts if the weight of the metal exceeds 3.126 gold troy ounces. Any foreign exchange purchases must be reported by banks to the NBU with justification documents for transactions outside of the country. This measure is to curb the chance of corruption in the system. 

These measures take effect immediately and will last until June 3.

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National Bank of Ukraine

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