The National Bank of Ukraine has extended the criteria for selection of banks for participation in currency interventions with the request for best quotation, according to NBU’s website.

The relevant NBU decision is fixed by the Resolution №1 of the Management Board of the National Bank of Ukraine dd. January 5, 2017 on Introduction of Amendments to Regulation on the Terms and Procedures of Foreign Exchange Trading.

From now on, 20 banks, which, as per the results of last quarter, will have the highest overall rating among interbank market participating banks, will be able to participate in currency interventions instead of the largest by trade turnovers interbank market participating banks.

This rating will be estimated as per three criteria: the number of bank’s foreign currency purchase and sale transactions with other market entities and NBU (specific weight of this criterion in the final rating score – 50%); the number of bank’s non-cash foreign currency purchase and sale transactions with clients (30%) and the number of bank assets (20%).

The new rules will come into force since January 6, 2017.

As reported, in late October 2016, NBU approved the procedures for the conduct of a new form of currency interventions – the request for best quotation, according to NBU’s approved strategy of currency interventions for 2016-2020.

For conducting such type of intervention, NBU will make a request for quotation for purchase and sale of foreign currency through trade informational system (TIS). After the receipt of proposals from banks, NBU will conclude a deal with that bank, which offered the best quotation.