The National Bank of Ukraine (NBU) has permitted nonresident banks to sign agreements on sale and purchase of foreign currency for hryvnias between each other, settling payments through correspondent accounts in Ukrainian bank, the NBU has reported on its website.

"From now on, foreign banks will be able not only to sign agreements on purchase and sale of foreign currency for the hryvnia with any Ukrainian bank (regardless of the fact which bank the hryvnia correspondent account is opened in), but also conduct such operations among themselves, making settlements through correspondent accounts in Ukrainian banks," the central bank said in a statement.

According to the report, this step will contribute to further growth of competition and liquidity in the interbank foreign exchange market, and will also increase the attractiveness of hryvnia assets for foreign investors," the central bank said in the report.

The changes were approved by NBU resolution No. 16 dated February 6, 2020 amending the regulation on the structure of the currency market of Ukraine, the conditions and procedure for trading in foreign currency and bank metals in the currency market of Ukraine, which is posted on the regulator's website and comes into force on February 8.