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Archive for July 26th, 2012

Parliament is called for extraordinary session

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 18:42

Parliament is called for extraordinary session

Parliament is called for extraordinary session

Speaker of Ukraine’s parliament Volodymyr Lytvyn has signed a resolution on extraordinary meeting of the parliament on request from 157 MPs.

According to the VR press office, the meeting will take place on July 20. The agenda of the meeting includes consideration of the amendments to the state budget, ratification issues and draft bills of economic character.

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NBU: Gold and foreign currency reserves increased by two billion USD

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 17:40

NBU: Gold and foreign currency reserves increased by two billion USD

NBU: Gold and foreign currency reserves increased by two billion USD

Ukraine’s gold and foreign currency reserves has increased by two billion dollars, the director of the monetary policy department at the National Bank of Ukraine Olena Shcherbakova told the press, ForUm correspondent reports.

According to the official, the Finance Ministry placed two billion USD in reserves, and on July 25, the means were credited.

In addition, Shcherbakova has assured that the gold and foreign currency reserves do not drop. “We gradually return the means to the IMF, but the amount of the gold and foreign currency reserves does not go down,” she explained.

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NBU to remain independent body, Horbal assures

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 17:01

NBU to remain independent body, Horbal assures

NBU to remain independent body, Horbal assures

The National Bank of Ukraine should remain the independent body, the MP from the Party of Regions, the advisor to the PM of Ukraine, the NBU council member Vasyl Horbal said in course of the teleconference bridge “Hryvnia before the election: What is the best way to protect savings of ordinary citizens?”, ForUm correspondent reports.
“Under its status, the National Bank is the independent body. I remember in 2008-2009 the National Bank was tried to make accountable to the Cabinet of Ministers outside the legal framework. And that caused nothing good,” he said.

He added that the council of the National Bank resumed its work. “The council of the National Bank is the advisory body. We already held its first meeting. The second will be held in September,” he concluded.

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Shcherbakova: There are no backgrounds for currency boom in Ukraine

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 16:46

Shcherbakova: There are no backgrounds for currency boom in Ukraine

Shcherbakova: There are no backgrounds for currency boom in Ukraine

There are no backgrounds for a currency boom among the population in Ukraine, the director of the monetary policy department of the National Bank of Ukraine Olena Shcherbakova said in course of a teleconference bridge “Hryvnia before the election: What is the best way to protect savings of ordinary citizens?”, ForUm correspondent reports.

“The population will create a demand for currency when they feel uncertainty in the economic policy of the country. Therefore, something has to provoke it. As of today, there are no factors that should and can provoke people,” the representative of the National Bank stressed.

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NBU: Activation of noncash payments will withdraw funds from the shadow

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 16:10

NBU: Activation of noncash payments will withdraw funds from the shadow

NBU: Activation of noncash payments will withdraw funds from the shadow

The activation of noncash payments in Ukraine will allow to withdraw funds from the shadow, the participants of a teleconference bridge “Hryvnia before the election: What is the best way to protect savings of ordinary citizens?” expressed their opinions.

“Today we have got a very large share of payments in local currency. It is characterized as not very transparent economy on the global scale. We have a really high percentage of cash in the monetary mass,” the director of the monetary policy department of the National Bank of Ukraine Olena Shcherbakova said reminding that the National Bank of Ukraine offered to develop a system of noncash payments. “We need to increase the share of noncash supply for payment use,” she said.

The representative of the National Bank reported that currently the relevant department of the National Bank is engaged in “promotion and juvenation of technologies that the National Bank works with.” “I believe that our Ukrainian card will be launched soon,” Shcherbakova said.

She also stressed that the increase in the share of noncash payments should be done gradually. “There should be a standard approach to everything and we should not make a revolution.
Historically, we have a high share of payments in cash. The transition should be done gradually,” Shcherbakova said adding that firstly we have to create a culture of noncash payments.

In turn, the chairman of the Raiffeisen Bank Aval Volodymyr Lavrenchuk added that the currency in cash is very expensive to manufacture and store. The noncash payments will be free for consumers and, in addition, banks are interested in their development. “Our society and state tend to be more transparent … all market participants are interested in it,” he said.

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NBU to provide liquidity to market as the economy grows

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 16:09

NBU to provide liquidity to market as the economy grows

NBU to provide liquidity to market as the economy grows

The National Bank of Ukraine will provide liquidity to the market as the economy grows, the director of the monetary policy department at the National Bank of Ukraine Olena Shcherbakova said in course of the teleconference bridge “Hryvnia before the election: What is the best way to protect savings of ordinary citizens?”, ForUm correspondent reports.
“Our policy is restrained, not tough. Unless there are real lending, investment programs and projects require sourcing, we plan to stick to this course,” Shcherbakova said. In addition, she recalled: “We have increased our active operations from 90 days up to one year. Today, our tools are ready for this.”
 
At the same time the representative of the National Bank explained why the provision of liquidity today is limited. “Today there is no demand for lending source. This is not a very pleasant fact, but it is a fact. The National Bank offers liquidity, when it sees there is demand for liquidity. When we do not see this demand, of course, we are more cautious about conducting our monetary and currency policy. However, the lending issue concerns not only the NBU, but a large range of infrastructural, structural, judicial aspects. They are being solved, but this process is not swift,” Shcherbakova said.
“As economy grows, the NBU will provide liquidity to the market. Current market liquidity allows for normal settling payments, functioning properly. Yes, sometimes rates rise high enough. But the period between rise and fall is often short. The market itself should work to set rates,” the director of the monetary policy department summarized the monetary policy of the NBU.

In turn, the President of the Raiffeisen Bank Aval Volodymyr Lavrenchuk confirmed there is a low demand for loans, and banks have sufficient hryvnia reserve. According to him, the excess liquidity could lead to speculation in the foreign exchange market.

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No prerequisites for hryvnia devaluation, bankers assure

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 15:43

No prerequisites for hryvnia devaluation, bankers assure

No prerequisites for hryvnia devaluation, bankers assure

There are no prerequisites for the devaluation of the Ukraine’s currency, the participants of the teleconference bridge “Hryvnia before the election: What is the best way to protect savings of ordinary citizens?” voiced their shared vision, ForUm correspondent reports.
The director of the monetary policy department at the National Bank of Ukraine Olena Shcherbakova said that Ukrainians should keep their savings in hryvnia, stressing that this position is not only that of the National Bank, but her personal one as well.

Shcherbakova does not consider appropriate the advice of some experts to keep savings in different currencies. “There is no single 100% perfect currency,” she said, recalling the situation with the U.S. national debt and the euro rate.

Shcherbakova stressed that currently Ukraine shows positive economic indicators. Among the other positive factors, the representative of the National Bank called Ukraine’s placing $2 billion Eurobonds. “The bad market will not attract an investor,” she said.
The President of the Raiffeisen Bank Aval Volodymyr Lavrenchuk shared such a point of view. According to him, the bank’s analysts predict the low “one-digit” inflation by the end of the year. The banker did not specify the exact figure, but explained it will be below 10. “There are no economic grounds for devaluation,” he said.

In turn, the MP, ex-banker, Vasyl Horbal agreed with his colleagues and added that today the exchange rate of hryvnia should not be associated with the upcoming elections. However, there are always such politicians who, not being competent, will use this theme for self-promotion.

“There are many “prophets and diviners” in the world but we find out about crises not from them,” the economic expert, the Independent Association of Banks of Ukraine Viktor Lysytsky supported Horbal.

All those present at the teleconference agreed that even if this fall there is a kind of traditional seasonal turbulence, the country has all the leverages and opportunities to maintain stable situation. The parliamentary elections will not affect the rate of national currency.

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National Bank is recommended to limit ready cash

Posted by the Editor on July 26, 2012


News / 26 July 2012 | 15:29

National Bank is recommended to limit ready cash

National Bank is recommended to limit ready cash

The National Bank should strictly regulate and limit the movement of the national and the foreign currencies taking into account the high level of shadow economy, corruption and money laundering, as well as the circulation of significant amounts of national and foreign currency outside the banking system and the need to ensure the stability of domestic financial market. The opinion was expressed by the associate professor of the finance department of the Kyiv National Trade and Economic University Halyna Kucher said.

“These activities will positively influence the monetary and foreign exchange markets, as well the legalization of business. The limiting measures will also bring to light a part of shadow business and will provide the influx of resources into the banking system of the state, which in turn will have a positive impact on the tax revenues to the budget and state social funds,” the expert said.

“The use of noncash payments will simplify the calculations between counterparties, accelerate the circulation of resources of households and businesses, and ensure appropriate monitoring and timely actions against financial and other risks,” Kucher assured.

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