Ban on opening accounts at foreign banks hinders trade in Ukrainian wheat at CBOT
Kyiv, September 18 (Interfax-Ukraine) – The lack of active trade in Black Sea wheat futures at the Chicago Board of Trade (CBOT) is connected with complications with opening accounts at foreign banks, according to President of the Ukrainian Grain Association Volodymyr Klymenko.
"To make this contract [on Black Sea wheat futures] work, in the first place, it should be used by grain producers who have to hedge their risks. But our grain producers cannot work at the CBOT, as foreign currency laws ban the opening of [bank] accounts abroad," he said at a press conference on the development of the grain market at Interfax-Ukraine in Kyiv on Tuesday.
He said that to open a bank account abroad, a Ukrainian citizen or company has to apply to the National Bank of Ukraine, prepare a package of documents and justify the need to open the account, which cannot in any case cover working at the CBOT.
"The Central Bank needs to change its instructions and let farmers work at the CBOT via brokers," he added.
As was reported, trade in Ukrainian wheat at the CBOT was launched in June 2012.