The national Bank of Ukraine (NBU) approved a list of banks that can participate in foreign exchange interventions in the form of a request for a better rate through the RFQ functionality in the July-September 2019. The list is not changed if compared with the second quarter of 2019:
- JSC “Alfa-Bank”,
- JSC “Alliance Bank”,
- PJSC “Bank for Investments and Savings”,
- PJSC “Bank Vostok”
- PJSC “CB “Globus”,
- PJSC “ING Bank Ukraine”,
- JSCB “Industrialbank”,
- PJSC “credit Agricole Bank”,
- JSC “OTP Bank”,
- JSC “Oschadbank”,
- Joint-stock Bank “Pivdennyi”,
- JSC CB “PrivatBank”,
- PJSC “FUIB”,
- JSC “Raiffeisen Bank Aval”
- JSC “Oschadbank”,
- AO Citibank,
- JSC “Taskombank”,
- JSB “Ukrgasbank”,
- JSC “Ukreximbank”,
- JSC “UkrSibbank”.
“This list does not limit the participation of all banks in foreign exchange interventions in the form of a query regarding the best course through the Matching functionality, which is now concentrated almost the entire volume of transactions on interbank currency market”, – reported in the NBU.
National Bank also informed that in the second quarter of 2019, given the favorable situation on the interbank foreign exchange market, the national Bank bought 847,4 million dollars. A large part of 536 million dollars purchased through intervention using functional Matching.
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Foreign exchange intervention on the best course through the functionality of the RFQ was carried out. Even 311,4 million dollars, the national Bank bought through intervention at a uniform rate through the Matching functionality.
“During the same period, the NBU sold on the interbank foreign exchange market for smoothing exchange rate fluctuations 64,6 million dollars. The entire amount was sold through the intervention at a uniform rate through the functional Matching”, – noted in the NBU.
Ukraine’s international reserves increased by more than a billion dollars
Note that intervention in the form of a query regarding the best course was introduced in accordance with the Strategy of currency interventions of the National Bank for 2016-2020 and conducted from the beginning of 2017.
According to the selection criteria, foreign exchange interventions at the best rate can make the participation of 20 banks, which in the previous quarter had the best rating among banks participating in the interbank market. The rating of banks is calculated on the basis of three criteria:
the volume of operations on purchase and sale of currency between the Bank and other market actors, in particular National Bank (share in total rating is 50%);
the volume of operations with clients on buying and selling of foreign currency (weight 30%);
the Bank’s total assets (weight – 20%).
Foreign exchange intervention at the best courses are as follows: NBU simultaneously sends request to all banks on the price of purchase/sale of foreign currency through the trading and information systems Bloomberg and Thomson Reuters, receives input from banks and enter into an agreement with the Bank that offered the best price.
Foreign exchange intervention at the best rates from April 2018, the NBU has two ways. First, by request for purchase/sale of foreign currency from the banks through the trading system and concluding the agreement with the Bank that she suggested (buy a trading information system RFQ). Second by selecting best prices available in the sales information system of the quotations of banks and agreements with the Bank that offered it (functional Matching).