From now on, the state regulator in the face of the National Bank of Ukraine will determine the form of intervention depending on the situation on the currency market.
This is stated in the message published on an official resource of the national Bank.
The NBU reminded that the strategy of the controller provides the opportunity to carry out currency intervention in four forms – monetary auction, interventions under a single course intervention with the best rate and targeted intervention. While earlier, the preferred form of foreign exchange intervention was a foreign exchange auction. “However, other forms of currency interventions have also confirmed its effectiveness, in particular for surgical intervention in small volumes”, – stated in the message.
The national Bank plans to soon move to the implementation of foreign exchange intervention using a Matching – new functionality for agreements in trade-information systems (Bloomberg, Thomson Reuters, etc.).
“The main advantage of foreign exchange interventions through the Matching functionality is the anonymity. The quotes of all the participants of the functionality, including the National Bank, is exhibited anonymously, and the participants in the transaction of buying and selling currencies get information about the counterparty only after the conclusion of the agreement “, – stated in the message.