NBU doubles limits on bank open currency positions

"The National Bank doubles the limits on bank long and short open currency positions - up to 10% of their regulatory capital. This will extend the ability of banks to conduct their operations in the interbank foreign exchange market by about $400 million and increase their role in smoothing excessive exchange rate fluctuations due to own currency position," reads the statement.

According to NBU estimates, the previous increase in the limits on bank open currency positions in mid-2018 had no negative impact on the Ukrainian foreign exchange market and did not increase the pressure on the hryvnia. On the contrary, it contributed to an increase in transactions in the interbank foreign exchange market and a decrease in exchange rate volatility.

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