Recent Posts
- Ukraine recovery should be based on development of territorial communities, innovations, involvement of professional domestic community – results of ESUR forum 29.06.2023
- Ukraine repatriates five more seriously wounded Russian POWs 10.04.2023
- Rada intends to include history of Ukraine, foreign language in final certification for general secondary education 10.04.2023
- Rada terminates protocol on joint anti-terrorist measures in CIS territories for Ukraine 10.04.2023
- 100 Ukrainians, incl defenders of Mariupol, returned according to swap procedure – Yermak 10.04.2023
NBU offers individuals to buy U.S. dollars at official deposit rate, sell them also at official rate late
KYIV. Oct 20 (Interfax-Ukraine) – The National Bank of Ukraine (NBU), in cooperation with banks, from October 21 will allow individuals to buy U.S. dollars at the official exchange rate of the NBU, make a term FX deposit with a bank, and withdraw the deposit by selling the dollars back to the bank for hryvnias (at the official rate on the day of withdrawal) after it matures, press service of the regulator reported on Thursday.
According to the report, there will be no limits on the number or size of such deposits per client. The deposit will carry an interest rate that will be set by the bank in line with its interest rate policy. Such deposits will come with maturities of at least six months and an extension option, but early withdrawal will not be possible.
By NBU estimates, such an instrument will give households an alternative to investing in FX cash. This will help reduce demand for FX cash, stabilize expectations, and ease exchange rate pressure in the cash segment of the FX market.
To offset their own currency risk, the banks will be able to buy an amount of U.S. dollars equal to the volume of such deposit transactions, at the official exchange rate, and can later deposit the purchased foreign currency into a separate account with the NBU.
The central bank said that the banks will not be able to use this foreign currency for any purposes other than to resell it to the NBU at the current official exchange rate after such FX deposits mature.