RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of January 31, 2019 No. 26

About approval of the Regulations on implementation of currency interventions of the National Bank of Ukraine in the foreign exchange market of Ukraine

According to Articles 6, of 7, of 15, of 28, of 44, of 45, of 46, of 48, "About the National Bank of Ukraine" and for the purpose of establishment of procedure and conditions of implementation of currency interventions of the National Bank of Ukraine in the foreign exchange market of Ukraine the Board of the National Bank of Ukraine DECIDES: 56 Laws of Ukraine

1. Approve Regulations on implementation of currency interventions of the National Bank of Ukraine in the foreign exchange market of Ukraine which are applied.

2. To department of the public markets (Sergey Ponomarenko) after official publication to inform banks information on adoption of this resolution.

3. The resolution becomes effective from the date of enforcement of the Law of Ukraine "About currency and currency transactions".

Approved by the Resolution of Board of the National Bank of Ukraine of January 31, 2019 No. 26

Regulations on carrying out currency interventions of the National Bank of Ukraine in the foreign exchange market of Ukraine

1. This Provision establishes procedure and conditions of implementation of currency interventions of the National Bank of Ukraine (further - National Bank) in the foreign exchange market of Ukraine.

2. In this Provision terms are used in such values:

1) currency intervention - purchase, sale or exchange of foreign currency of National Bank in the foreign exchange market of Ukraine for the purpose of influence on the exchange rate of hryvnia to foreign currencies and on the general demand and supply of money in Ukraine;

2) currency transaction on conditions "spot" - currency transaction under the agreement which conditions provide accomplishment of this transaction for the second working day after day of the conclusion of the transaction;

3) currency transaction on conditions "that" is currency transaction under the agreement which conditions provide accomplishment of this transaction in day of agreement signature;

4) currency transaction on conditions "that" is currency transaction under the agreement which conditions provide accomplishment of this transaction in the first working day after day of the conclusion of the transaction;

5) the request - the offer concerning purchase, sale or exchange of foreign currencies which includes essential terms of transaction and is represented bank in National Bank by means of functionalities of trade and information systems;

6) "discount for risk (haircut)" - the size of adjustment of rate of the first part of currency intervention determined by National Bank on purchase, sale, exchange of foreign currency on conditions "swap" for the purpose of minimization of losses of National Bank in case of realization credit and currency is risk. The size of "discount for risk (haircut)" (separately according to certain characteristics) affirms the administrative act of National Bank;

7) the competitive application for participation in currency auction (the competitive request) - the request of bank with scoping of purchase (sale) of foreign currency at currency auction and hryvnia exchange rate to foreign currency;

8) cutting off rate - hryvnia exchange rate to foreign currency which is determined by National Bank as limit for election of requests of banks for their satisfaction at currency auction;

9) the non-competitive application for participation in currency auction (the non-competitive request) - the request of bank with scoping of purchase (sale) of foreign currency at currency auction in which hryvnia exchange rate to foreign currency is not specified;

10) netting - offset of the demands in reconvention of National Bank and bank arising during implementation of currency intervention for certain value date in one currency. Calculations for netting are perfromed on the terms of advance payment from bank;

11) the weighted average rate of currency auction - the hryvnia exchange rate to foreign currency calculated by National Bank as the weighted average rate according to all competitive requests satisfied during the auction;

12) trade and information systems - trade and information systems which functionality allows to conclude bargains of purchase, sale, exchange of foreign currency.

Other terms which are used in this Provision are used in the values determined in the Law of Ukraine "About currency and currency transactions" both other legal acts of Ukraine and regulatory legal acts of National Bank.

3. National Bank "that" performs currency interventions on conditions, "volume", "spot" or "swap".

4. The National Bank performs currency interventions on purchase, sale of foreign currency in shape:

1) interventions on single rate;

2) currency auction;

3) interventions on the best rate;

4) address intervention.

5. The National Bank performs currency interventions on exchange of foreign currency on conditions "swap" in the form of interventions on single rate.

6. The National Bank performs currency interventions with use of functionalities of trade and information systems.

7. The National Bank performs intervention on single rate in the way:

1) collection of requests of banks for purchase/sale/exchange of foreign currency on the single certain exchange rate and their further pro rata satisfaction within certain amount of currency intervention; or

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