National Bank has changed the rules of the IBA

The National Bank of Ukraine has changed the rules of the interbank foreign exchange market The decision stipulated by the NBU № 544, the text of which was published December 28 in the government newspaper Uryadovy Kurier, reports Interfax-Ukraine. Resolution of NBU № 544 registered in the Ministry of Justice on December 24 and shall take effect from the date of publication. According to the decree, the foreign exchange transactions on a "swap" covers transactions involving the simultaneous conclusion of contracts, the terms of which combine the purchase or sale of foreign currencies on a "spot" on the back of selling or buying the same currency on a "forward". The paper notes that both contracts under such an operation should be concluded with the same partner. The decree also provides that the NBU can conduct foreign exchange intervention on buying and selling foreign currency on a "swap" for a period of up to 3 months. Recall, the head of advisory group head of the National Bank of Ukraine, Valery Litvitsky and Prime Minister Mykola Azarov said that in 2011 a significant change of the hryvnia will not. Currency swap - a combination of the two opposing foreign exchange transactions by the same amount with different value dates. Applied to swap the execution date of the transaction is called a near value date and the date of execution of a remote date back to the deal - the end date of the swap (maturity). Most of the currency swap transactions concluded for a period of 1 year. Default swaps (with a spot) - are the closest available date - spot, long under the striker; Spot - settlement terms under which the payment transaction is performed immediately (usually within two days). Transactions spot also called cash or cash registers. The scene of spot transactions may include: the interbank foreign exchange market, stock and other stock exchanges and OTC markets (commodity, stock and foreign exchange). Forward (forward contract) - a contract (derivative), under which one party (the seller) agrees to a certain contract period to transfer the commodity (underlying asset) to another (the buyer) or make an alternative monetary obligation, and the buyer agrees to accept and pay for this basic asset, and (or) under which the parties appear counter-monetary liabilities in the amount of which depends on the value indicator of the underlying asset at the time of fulfillment of obligations in the manner and within the time limit or deadline established by the contract.