Ukraine, China set to launch hryvnia/yuan currency swaps

2011-11-09 17:58:17

The National Bank of Ukraine (NBU) and the People's Bank of China (PBC) in the coming months may sign an agreement on the introduction of the hryvnia/yuan currency swaps, the Beijing-based UKRINFORM correspondent reported after talks between the first deputy head of the NBU Yuriy Kolobov and PBC deputy governor Hu Xiaolian in Beijing.

By the end of this year a meeting of governors of the two central banks is supposed to be held to discuss in this issue.

"At a time when the global financial system is going through hard times, and the IMF is not always able to play a necessary role in overcoming the crisis, bilateral cooperation will play an increasingly important role, will have a positive impact not only on bilateral relations, but also in terms of overall stabilization of the global financial situation," Hu Xiaolian said during the meeting.

She said that China has signed agreements on swaps with 12 countries worldwide, and nearly 10 countries announced the Chinese yuan as one of their reserve currency.

Yuriy Kolobov, for his part, emphasized that cooperation with China is both an important area of foreign policy of Ukraine, as well as establishing a joint business, expanding cooperation in the banking and financial sectors. According to him, the foreign exchange regulator is ready to help optimize the business environment and the convergence of business circles of both countries.

As previously reported, the issue of currency swap was discussed during a visit to Beijing on September 19-21 of the delegation headed by the chairman of the National Bank of Ukraine Serhiy Arbuzov. Then the NBU head said that changes to the currency decree were being prepared to possibly settle in local currencies, after which they will be submitted for consideration by the Ukrainian parliament.