To stop an outbreak of panic, the Ukrainian Credit-Banking Union has asked the National Bank of Ukraine to limit purchases of foreign currency to $1000 a day per person.
This was stated in an announement posted on the Ukrainian Credit Banking Union’s website, reports Espreso.TV
“The purchase of currency over the specified amount, but not over 150,000 UAH, must be realized in a non-cash form only by opening a bank deposit account,” proposes the Union.The Union also recommends instituting limits on purchases of foreign currency in UAH on the interbank market for payment of foreign economic contracts. Currency purchases would be allowed only in cases where the foreign economic activity is supported by a customs declaration or a duly executed acceptance certificate. However, early repayment or prepayment of foreign currency loans would be banned.
The Banking Union also wants to institute a mechanism to terminate trading on the international currency market in cases where there is 5% or greater deviation from the international currency rate when compared to the average rate for the previous day.
The bankers believe that in order to prevent illegal foreign exchange transactions, the National Bank of Ukraine must institute strict controls on transactions and ensure transparency in the sale of foreign currency by publishing daily volumes and the intervention rate.
To contain the process of devaluation of the national currency and prevent panic among the population, the Banking Union believes it is absolutely necessary to complete the National Bank of Ukraine Resolution No. 49, dated February 6, 2014, regarding a six-day lead time for the purchase of currency on the interbank market; and Resolution No. 281, dated August 10, 2005, confirming the regulation of procedures and conditions for foreign exchange trading and rules on the functioning of the interbank market.
“As a last resort, to preserve the savings of the population and to safeguard the country from a deep financial crisis while restoring order in financial management, UCBU does not preclude the need to introduce a temporary ban on the sale and purchase of foreign currency in the country and the early withdrawal of deposits,” the statement says.
At close of of business on February 26, the interbank exchange rate was USD/10.5 UAH for sales and 10.3 UAH for purchases.
Translated by Anna Mostovych
Edited by Jana Kubalova and Robin Rohrback