12:25 22.01.2018

NBU seeks to improve methods for calculating official hryvnia exchange rate

2 min read
NBU seeks to improve methods for calculating official hryvnia exchange rate

The National Bank of Ukraine (NBU) is mulling a possibility of calculating the official exchange rate using information from trading and information systems of Bloomberg and Reuters on real market deals.

"The exchange rate could be more quickly announced, more convenient for using it as a market benchmark," the NBU said last week.

The NBU recalled that now the official exchange rate is calculated as average figure for all interbank deals during the day according to the data of the ValCli system (own software of the NBU where banks today confirm all their deals on sale and purchase of cashless foreign currency on the interbank market).

Director of the open markets department at the central bank Serhiy Ponomarenko said that the change of the method would also decrease burden on banks in part of making reports thanks to the refusal from the mandatory registration of deals in the ValCli system.

It is planned that with the new methodology transactions with a deviation from the exchange rate by more than 2% of the arithmetic figure for all transactions and transactions which rate/volume deviates from the average arithmetic rate/volume by more than 2 standard deviations will be cut off in the calculation.

The National Bank also announced plans to move to the implementation of currency interventions using Matching - a new service for concluding transactions in the trading and information systems.

"This service, the implementation of which is now being discussed with market participants, will ensure that the interbank foreign exchange market has a constant availability of firm prices for the purchase and sale of foreign currency and the rapid conclusion of transactions with the best exchange rate parameters," the regulator said.

According to the presentation given by the NBU, the intervention, introduced by the regulator last year in the form of a request for a better exchange rate, proved itself in practice and has prospects for wider application.

AD
AD
AD
AD
AD