11:48 18.10.2016

Situation on currency market leaves space for further liberalization – NBU official

2 min read
Situation on currency market leaves space for further liberalization – NBU official

The situation on the currency market is developing positively, which gives grounds to expect further market liberalization steps, Director of the monetary policy and economic analysis department of the National Bank of Ukraine (NBU) Serhiy Nikolaichuk has said.

"Today the situation is rather positive and after receiving a new tranche from the IMF the chances that we soon move forward and make new liberalization steps are growing," he said at a briefing on Monday.

He said first the NBU would move forward to relax requirements to obligatory sale of currency income and the term of its return to Ukraine.

"I do not see the situation that we have to use large sums of reserves [to stabilize the exchange rate]. The exchange rate would float. We would slowly accumulate reserves, as we have this goal in the IMF program. We believe that the reserves must be expanded more. We would not make it in large volumes," he said.

Nikolaichuk also said that the NBU continues working on the launch of the market makers institution on the currency market.

He said that deal registration system's statistics on the currency interbank market Valcli helps to determine trading leaders who can be first market makers.

"There are 15 or 20 banks in the rating. They cover 75% of all deals on the market. If this circle of banks would carry out transactions, they would be fully translated to the market," he said.

He said that market makers are to permanently declare exchange rates for transactions with currency, which is a serious liability for banks.

"There is no final decision… Maybe, some preferences will be proposed to them. For example, increased limits for open currency position," the official said.

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