The resolution will come into effect from August 19, 2014
The Ukraine’s National Bank continues employing a system approach to improve the monetary policy framework, in order to respond to the current challenges and lay the foundation to attain the medium-term goals, the press-office of the NBU reports.
In particular, on August19, 2014, the requirement demanding to transfer some amount of mandatory reserves to a separate NBU account will be cancelled.
Pursuant to Resolution of the NBU dd. 08.08.2014, No. 480, On Changes to the NBU Board’s Resolution dd. August 19, 2013, No. 371, the banks will form and keep all mandatory reserves on the correspondent account opened with the National Bank of Ukraine starting from 19.08.2014.
The norm that is valid now sets out the funds amounting to 20% of the mandatory reserves formed in the previous accounting period are to be kept in a separate account opened with the NBU, while the remaining funds formed for a certain period as specified in the legislative norms are to be kept in the correspondent account in the NBU.
If this decision is approved, the banks will be more flexible in managing liquidity – they will get an access to extra money totalling approximately 7 billion hryvnias.
Apart from the above said, Resolution No. 480 also rescinds the preferential order in forming mandatory reserves raised in the Russian roubles, setting a zero rate. For today, there is no need for stimulus; the mandatory reserves will be formed in the Russian roubles in conformity with the requirements alike those applied to other foreign currencies.
