Economy

NBU decides to equalize limit for forex currency long and short positions at 5%

The National Bank of Ukraine (NBU) has decided to align the positions of banks and establish a "mirror" value of limits, both for long and short open foreign currency positions at 5%, according to the central bank's website.

The corresponding initiative was approved by decision No. 347-RSh of the NBU board dated June 19, 2018 on amendments to resolution No. 184-RSh of the NBU board of March 29, 2018, which will come into force on July 1, 2018.

Thus, the limit of the total long open forex position of the bank is raised to 5% from 3%, the limit of the total short open currency position is reduced to 5% from 8%.

The National Bank notes that the decision made in May this year to adjust the limit values not only did not affect the state of the foreign exchange market, but also contributed to its stabilization.

"After changing limits on the background of increasing volumes of operations in the interbank foreign exchange market, the average daily volume of currency sales by banks in May increased to $10 million from $7.6 million in April. Accordingly, banks began to play a more active role in smoothing the fluctuations in the hryvnia exchange rate due to their position, and this contributed to a decrease in the volatility of the hryvnia rate," the report says.

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