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National Bank of Ukraine introduces additional measures to stabilize the money market

September 3, 2014

ENP Newswire - 03 September 2014

Release date- 01092014 - A number of risks and uncertainties over the future path of the economy and financial markets, which are associated with the tense situation in the east of the country, cause temporary fluctuations in demand and supply in the foreign exchange market.

The National Bank of Ukraine consistently takes measures to address such fluctuations, primarily by deploying market-based instruments. However, the commitment to market-based monetary regulatory measures does not rule out the imposition of temporary administrative measures to calm the situation amid a significant increase in emotional volatility in the market.

Based on the analysis of the effects of measures introduced by NBU Board Resolution 'On the regulation of financial institutions' activities and the execution of foreign exchange transactions' No. 328, dated May 30, 2014, the National Bank of Ukraine has adopted a decision on the temporary extension of these measures and the imposition of certain additional measures. To this end, the National Bank of Ukraine Board passed Resolution 'On the imposition of additional measures to stabilize the money and foreign exchange markets of Ukraine' No. 540, dated August 29, 2014 (hereinafter - Resolution No. 540).

Resolution No. 540 comes into effect on September 2, 2014, and will remain in force until December 2, 2014, meaning that the temporary measures will stay in place for three months. These measures aim to prevent the use of the financial system of Ukraine for the purpose of money laundering and terrorist financing and deliver the right conditions for the efficient deployment of applicable control mechanisms designed to prevent capital flight and suspend transactions that carry enhanced risk of being used for unlawful purposes.

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Source: ENP Newswire

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