Introduction of a mechanism of hedging currency risks will boost the loan - bankers

Introduction to the National Bank of Ukraine (NBU) of hedging currency risk will increase the hryvnia liquidity of banks, which will boost lending and increasing the investment attractiveness of the country, according to bankers polled by Interfax-Ukraine ". "The main positive effect of the ongoing liberalization will become a powerful flow of funds from foreign markets to our internal - influx in the form of capital investment. This, in turn, provide the country with a stable foreign currency and because of the opportunities of the swap with the National Bank to increase liquidity and provide the hryvnia Reducing interest rates on domestic resource market. Ukrainian banks will significantly cheaper resources that will enable a start to revive lending business purchasing power "- believes the deputy chairman of the bank" Premium "(Kiev) Andrey Ponomarev. According to his estimates, the introduction of hedging currency risks will contribute to improving the investment climate in the country that will create the preconditions for the return to Ukraine of funds from offshore, as well as attracting inward investment. Chairman of the Board of VAB Bank (Kiev) Peter Baron also expects that the introduction of the mechanism of currency swaps will increase the investment attractiveness of Ukraine. "The main positive point that can be achieved, it is quite a high predictability of currency fluctuations for a sufficiently long period. Under the conditions are not yet fully overcome the crisis it is a strong argument in favor of this initiative. Companies that work with exports and imports become more secure from exchange rate fluctuations, which gives them more opportunities to work. Increased flexibility and predictability in the currency market will make the economy more transparent and attractive for investment, "- said the banker. Treasurer Ukrinbank (Kiev), Oleg Bronin also welcomed the idea of ??a currency swap, noting the importance of equal access for all banks in this financial instrument. "The mechanism of the currency swap for the banks to become another tool for liquidity support, will allow hedge against currency fluctuations, as well as additional profit on the differential in interest rates. However, there will be widespread cross-currency swaps in the market will depend primarily on how an active role will take on National Bank, will provide if it is equal for all participants access to this tool, "- he said. O. Bronin also noted that the lifting of restrictions on buying foreign currency bank in its position and permit two-way exchange quotations on the interbank market will help increase trading volume and liquidity of the interbank foreign exchange market, as a result of a more flexible and equitable rate fixing. According to analysts of the bank "Forum", the liberalization of the foreign exchange market will not lead to significant exchange rate fluctuations. "With the introduction of these innovations should be expected to increase market size, and possibly increased volatility in the interbank market, but exchange rate fluctuations should not be significant, as supply and demand are fairly balanced now. These changes should make the Ukrainian interbank market is more attractive tool for maintenance the needs of foreign investors ", - analysts say. Deputy Chairman of the Board of Finance and Credit "(Kiev), Sergei Borisov, also predicts an increase in volatility of the hryvnia exchange rate on the interbank market due to the actions of the National Bank for its liberalization. "Liberalization of the issue of open foreign exchange position will enable banks to rapidly adjust their liquidity on the basis of liquidity and of monetary conditions. The foreign exchange market will give it more dynamic and will be of great volatility. Formed a segment of banks, market makers, whose standard of open foreign exchange position will give the opportunity to conduct operations in large volumes, and through them to increase market liquidity. Spreads likely suzyatsya. The presence of swaps with the NBU will maintain price points open foreign exchange position, "- said the banker. Director of Treasury Bank Khreschatyk (Kiev) Alexey Kozyrev believes that the introduction of a mechanism of hedging currency risks will increase in the stock market. "Given the significant need for economic forecasting and planning of the exchange rate mechanism for hedging currency risks is needed. With quotes for currency swaps with the National Bank, banks and customers will be able to predict the rate in the medium term, which will give opportunity to attract significant foreign investment for a relatively long period of time in primarily due to the acquisition of securities of Ukrainian issuers, government bonds and bonds of banks, "- he said. Assessment Andrei Kozyrev, the introduction of swaps involving the NBU will banks to get one more mechanism to attract relatively long hryvna resource, as well as strengthen the role of interest rates as a tool for regulating rates on the monetary market of Ukraine. Director of the Treasury of Raiffeisen Bank Aval (Kiev), Vladimir Kravchenko, said the importance of an integrated approach to the introduction of the interbank market of new financial instruments. "I believe that the planned actions should be implemented as a package. Right in fact the initiative to launch currency forwards, futures and swaps may not be fully effective and lead to a full-fledged market for these instruments without addressing adequately considered open currency positions: at the present time excluded from the calculation of reserves for foreign currency loans and off-balance sheet "- he said. As reported, the NBU has recently introduced changes in the way of foreign exchange trading, allowing banks to conduct operations under the swap with each other already, from 30 May this year. Currency swaps are permitted for up to 365 calendar days. In addition, the NBU lifts trade restrictions on banks: if the previously-bank financial institutions are able to enter the interbank market exclusively as the seller or the buyer currency, the changes they are allowed to act simultaneously as a buyer and a seller. Amendments to the order also provides that banks are entitled to their own operations within the established limits of open currency positions. Materials: Interfax-Ukraine