The NBU refused to make repo transactions
The National Bank of Ukraine begins to undertake practical steps in order to set up an open policy and create relations between participants of the banking sector that grow from clear objectives and understanding. This government agency passed quite a number of decisions, the statement of the NBU’s press-office says.
Consequently, firstly, the National Bank of Ukraine denied carrying out “buy-back” transactions initiated by the banks.
Secondly, the amount of liquidity offered for funds will be set during the refinancing tenders held weekly. This will allow aligning the positions of all banks and spurring further development of the market.
Thirdly, the tenders will be conducted without announcing the repo amount and rates. This will boost to empirically define an actual demand and correlation with market prices. In confirmation of the NBU’s policy declared, and following an approach to setting requirements to all banks, which is based on equal footing, the National Bank of Ukraine continues improving the criteria and procedures that will expand refinancing opportunities for the banks.
