More Freedom On Currency Swap Operations

On 13 April 2011, the National Bank of Ukraine (the "NBU") approved Resolution No. 111 'On Amendments to Certain Legislative Acts of the National Bank of Ukraine' ("Resolution No. 111"), which brought changes to the Regulation 'On the Procedure for and Terms of Foreign Currency Trading' approved by Resolution No. 281 dated 10 August 2005.

The new provisions on currency swap operations became effective as of 30 May 2011. From now on, Ukrainian banks are allowed to carry out the following currency swap operations: (i) the sale-purchase of currency with other Ukrainian banks; (ii) the exchange of currency with other Ukrainian banks; and (iii) the exchange of currency on international currency markets. However, such currency operations must be performed within a term not exceeding 365 calendar days, and can only involve so-called 1st group currencies*.