Ukrainian President Viktor Yanukovych has signed a law providing the National Bank of Ukraine (NBU) with the right to introduce for up to six months the obligatory sale of part of foreign exchange earnings and to cut the terms for its return, the presidential press service has reported.
“The head of state signed law No. 5480-VI on amending certain legislative acts of Ukraine concerning the extension of instruments to influence the monetary credit market,” the report reads.
As reported, earlier the NBU, given the likely worsening of the crisis in the global economy, proposed that the parliament amend the financial legislation, allowing the central bank to temporarily introduce the obligatory sale of part of foreign exchange earnings.
According to the NBU, providing it with the right to use such instruments will allow it to choose the best time for their use, which will enable to increase the effectiveness of these instruments to prevent the development of negative trends on the foreign exchange market of Ukraine.
The obligatory sale of foreign exchange earnings was abolished in 2005, due to which the NBU lost an instrument that ensured the guaranteed sale of foreign currency on the domestic foreign currency market.
Currently the term for foreign exchange earnings return in Ukraine is 180 days.
