NBU to open currency swap line with China worth 15 bln yuan
The National Bank of Ukraine (NBU) has announced the launch of work on an earlier signed agreement to set up a currency swap line between the two countries worth 15 billion yuan (the equivalent of $2.44 billion).
The swap line could be used to finance trade contracts, investment projects and other purposes, the NBU said.
“The move will contribute to stabilising the economic situation, and reducing the demand for foreign exchange from importers. Once the situation is back on track with the support of our foreign donors and partners, we expect the hryvnia to appreciate in a mid-term perspective,” reads a statement from the central bank posted on its Web site.
As reported earlier, in January the NBU announced the launch of a swap line with China within the framework of a three-year agreement signed in June 2012 between the National Bank of Ukraine and People's Bank of China worth a total of 15 billion yuan.
The deal involves mutual exchange of currencies - the hryvnia and the yuan, which would reduce the demand of importers for foreign currency and relax pressure on the hryvnia exchange rate.