The National Bank of Ukraine has softened the restrictions on purchase of foreign currency by banks that violated the requirements for formation and holding of obligatory reserves, the Ministry of Finance reports.
The resolution passed by the NBU’s Board on July 3, 2015, No.436, cancelled previous prohibition for banks to make purchase of currency in the next calendar month in case of non-compliance with regulations specifying formation and holding of obligatory reserves during the accounting period.
The NBU has explained that the resolution was adopted to simplify the requirements set out for currency exchange transactions made by banks, within open positions for currency pairs.
In addition, this document is aimed at effective control to ensure timely execution of reserve requirements covering the transfer of oversight functions from regional branches to the NBU’s Banking Supervision.
