12:50 30.06.2015

NBU monetary policy committee recommends optimizing approaches to transactions on sterilizing liquidity

1 min read
NBU monetary policy committee recommends optimizing approaches to transactions on sterilizing liquidity

The monetary policy committee of the National Bank of Ukraine (NBU) believes it is better to optimize the existing practice of holding transactions on sterilization of the free liquidity of the banking system, the regulator said on its website, referring to the decision of the monetary policy committee after meetings were held on June 24 and June 25.

The committee recommended that deposit certificates which define the price of their placement during the interest tenders in restricted volume are placed for the period of one to three months and transactions on the sale of government securities from the NBU's portfolio should be conducted.

"The changes are aimed at strengthening of the market principles of functioning of the monetary and credit market via the involvement of effective mechanisms of price formation and creation of opportunities for the formation of the forward yield curve, the stirring up of the government securities market and providing additional tools to banks to diversify their active transactions," reads the report.

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