The National Bank of Ukraine (NBU) said that banks’ stocks of foreign cash in their tills are sufficient; the results of cash replenishment operations on 5 November indicate this.
Results of the 5 November operation
During the operation the regulator offered to exchange non-cash currency for cash in the amount of $50 mln and €50 mln. Banks submitted applications only for $40 mln and €9 mln, four banks participated, and the NBU fully satisfied all applications, writes.
Over 3–5 November the announced supply of cash currency significantly exceeded actual demand from banks. The NBU describes demand for such operations as moderate, and all received applications were satisfied.
Demand and liquidity provision
The NBU noted that the financial system has sufficient foreign-currency cash liquidity to meet the needs of the public. The regulator also said it stands ready to continue carrying out additional operations to replenish banks’ cash tills with foreign currency as needed.
Separately, the National Bank of Ukraine clarified that operations exchanging banks’ non-cash currency for cash to top up tills in no way affect the level of Ukraine’s international reserves. The regulator emphasised its readiness to support the stability of the foreign-exchange market.
