The applications with lower weighted average
The National Bank of Ukraine is planning to streamline the procedure for holding daily currency auctions, with average weighted exchange rate being drawn from normal distribution. In accepting applications, preference will be given to the banks that can offer the buy rate being equal to and lower than the weighted average. This will allow market participants to propose the actual exchange rate for hryvnia rather than make higher price proposals – help depict the representational status of the market, the press-office of the NBU reports.
Valeria Gontariova added that the regulator will further exert efforts to balance the currency market, to restore the banking system and economy as a whole.
“We still hope that the market will be balanced with our help. At the same time, we are preparing some monetary policy measures to stabilize the situation. If panic prevails over common sense among the market players, then the National Bank will introduce extra administrative measures. Obligatory use of a documentary credit as one of the form of payment for export-import operations is being considered now. This will stem exporters from holding foreign currency in anticipation of a higher rate, and will reduce import“, – Chair of the National Bank of Ukraine summarized.
