NBU: Ukraine will join Clearstream international depository system in 2019

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Open source
The Clearstream International Central Securities Depository, Deutsche Börse Group, and the National Bank of Ukraine (NBU) have agreed on an action plan for opening up access for foreign investors to Ukrainian government securities through the Clearstream system. This was reported by the press service of the National Regulator on the NBU website.
As the NBU specified, the establishment of a link with the Ukrainian market [international depository accounts in the depository of the National Bank] is planned for the first quarter of 2019. Such a step will allow settle all government bonds in the hryvnia through the international Clearstream system, increasing the efficiency of settlements and simultaneously reducing their cost for investors.
Such innovations are expected to increase the demand for Ukrainian government securities. In its turn this will increase their liquidity and attractiveness at the international markets. As a result, the Ukrainian government will benefit from expanding of the range of long-term financing sources and reducing the cost of debt funds. In addition, it will improve the currency structure of public debt and transmission mechanism of the NBU monetary policy, as well as the further development of Ukraine’s capital markets.

As The Journalist reported, the National Bank stated that it is not obliged to keep the hryvnia exchange rate.

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