What is the interbank market: Help

The volume of interbank foreign exchange market is many times greater than the transaction in the cash market, so the dynamics of the course in the interbank market, as a rule, is crucial for the spot market rates Today the media is often the phrase "inter-bank foreign exchange market" or "interbank" but here's what he is is not known by many. About how, by whom, and most importantly on what conditions managed and controlled by the interbank market, as the interbank rate is calculated and that it is influenced by, the journalist told LIGA.Finansy market experts. What is the "interbank" In short, the interbank foreign exchange market (MBP) - a unified system of clearing trades in foreign currency in Ukraine, said Alexei Blinov, Director of Research "Astrum Investment Management". The dynamics of the interbank market generally determines the dynamics of spot market volume of interbank foreign exchange market is many times greater than the transaction in the cash market (in January 2011 the ratio was $ 13.4 billion from $ 3.4 billion), so the dynamics of the course in the interbank market, as a rule , is crucial for the spot market (except during periods of excessive demand of the population of foreign currency, which in Ukraine is not observed for more than a year). If we talk in more detail, the interbank foreign exchange market - it's actually an unofficial currency exchange, where buyers and sellers of foreign currency through the communication channels place their bids on the sale and purchase of currency and are looking for contractors. At the same time remain and telephone conversations between dealers, said Alexander Okhrimenko, the chairman of the supervisory board of bank "Center". For its part, Nikolay Ivchenko, head of information-analytical center "Forex Club" in Ukraine, stressed that the interbank foreign exchange market - a trade of non-cash foreign currency, carried out by commercial banks with the use of special computer systems. In Ukraine, this system "Reuters Dealing" and "UkrDealing". In fact the interbank market - a currency exchange, where trading Ukrainian banks' commercial banks together is a correspondent relationship, that is, open to each other's accounts - says N. Ivchenko. - In these accounts, there are certain balances within which banks can conduct operations on purchase and sale of non-cash currency. " Describing the interbank foreign exchange market in the first place, it is worth noting that work on it can only resident banks in Ukraine. As told by Anton Stadnik, Acting Head of Treasury Management "FUIB, interbank foreign exchange market is regulated, banks may buy foreign currency on it only if there is commitment. "International Bank in Ukraine, one-sided: one bank in one day or can act as a net seller or net buyer, that is, banks are prohibited from buying and selling the same currency within one business day" - says the banker. The vast majority of transactions on the Ukrainian Interbank carried out with the U.S. dollar also previously acted to Pension Fund from operations on purchase and sale of non-cash currency, which in January this year was canceled. A. Blinov, adds: "Working in the interbank foreign exchange market can only commercial banks, with their respective license. Like the stock market, banks can put two applications: the purchase of foreign currency (bid) and sell it (ask / offer). The vast most operations on the Ukrainian Interbank Currency Market by the U.S. dollar. " Who supervises the work of the interbank interbank controls and regulates the National Bank of Ukraine (NBU), its regulations and other documents, in particular Resolution N281 "rules of operation of the system of confirmation of agreements on the interbank currency market of Ukraine National Bank of Ukraine and transfer (enrollment) fees on individual transactions with foreign currency and precious metals. " "Also, interbank work is strictly regulated time frame. Thus, there is the concept of the trading session (10:00 do17: 00), there is a regulation of internal operations (from 10:00 to 14:00) and regulation of transactions between banks (also 10:00 am do17: 00), "- said Stadnik. Regulation of the interbank market deals with NBU NBU is responsible for monitoring the implementation of its regulations by commercial banks ", - says N. Ivchenko. In addition, the National Bank at the expense of resources maintains a balance in the market. If the interbank market, there is an excess of currency, National Bank as a rule it buys, but if there is a deficiency - sells, said Alexander Okhrimenko. Who and on what terms involved in the auction to bid on the interbank market can only commercial banks. "They submit bids for the purchase or sale of foreign currency for their clients (importers or exporters), as well as for the calculation of its own obligations in foreign currency", - says head of information-analytical center "Forex Club" in Ukraine, N. Ivchenko. In this case, as the chairman of the Supervisory Board of bank "Center" A. Okhrimenko, there is some competition between different groups of banks. "There are banks, which often serve sellers of currencies, and others - the buyers. In some cases, banks are one of the terms of trade indicate the minimum lot for sale or purchase of currencies" - he says. Banks submit bids to buy or sell currencies to their customers, as well as for the calculation of its own liabilities in foreign currency According to the Bank FUIB A. Stadnik, all transactions must be registered in the system "Valcli" National Bank of Ukraine. "Also in this system are recorded and the internal operations of banks. Bank, the first step, carry out operations inside, nettinguya application of their clients (usually sell the currency by exporters to buy - importers). In addition, to purchase foreign currency should be established, as outlined in the decree N281 ", - said the banker. Once the bank zanettingoval its operations for the sale-purchase of foreign currency, it has formed a certain delta, and with this Delta Bank as net seller (if he has volumes of currency sales more than necessary) or as a net buyer (respectively, lower) leaves Interbank and closes its unmet requests. As a result of trades on the interbank market NBU vyschitvaet average rate, which is the basis for calculating the official NBU rate is not the next day. Julia Bondarenko, LIGA.Finansy