The National Bank of Ukraine (NBU) has approved the rules for measuring the fair value of derivatives used in transactions carried out by the central bank.

The new rules posted on the NBU's website were drawn up to suit the requirements of the International Financial Reporting Standards (IFRS) "Fair Value Measurement." It will replace the rules for measuring the fair value of NBU's transactions on sale and purchase of foreign currency on the swap conditions.

The NBU said that the new rules contain description of methods used by the central bank to measure the fair value of market and over-the-counter (OTC) derivatives. The rules also contain description of models for measuring ordinary OTC derivatives for currency forward, currency swap, currency option of a European type, contract on the forward interest and ordinary swap of interest.

In the future the NBU seeks to draw up calculations for measuring the fair value of ordinary derivatives.

Banks can use the NBU's rules if they do not have own methods and models for measuring fair value of derivatives.