National Bank of Ukraine signs currency swap agreement with the People’s Bank of China

Taking place last Friday under the radar, during the 33rd Meeting of the Central Bank Governors’ Club of Central Asia, Black Sea Region and Balkan Countries held in Shanghai (c), Governor of the National Bank of Ukraine Valeriia Gontareva and Governor of the People’s Bank of China Zhou Xiaochuan signed a Bilateral Currency Swap Agreement RMB/UAH worth up to UAH 54 billion and RMB 15 billion.

The new 3-year agreement will enter into force from June 23, 2015. Contemporaneously with the entry into force of this agreement, the previous agreement entered into between the National Bank of Ukraine and the People’s Bank of China in 2012 will become invalid.

“This agreement is extremely important for our countries, being strategic partners, and will promote the economic development of both countries, said Valeriia Gontareva. – The funds received under the agreement may be used to finance commercial operations and direct investments between the two countries.”

She added that the practical implementation of currency swap arrangements will enable it reduce importers’ demand for foreign currency and hence lower the pressure on the exchange rate, and help stabilize the situation in the domestic money market.

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