The National Bank of Ukraine has placed up to $1 billion of foreign exchange reserves under the management of the World Bank. Deputy Head of the National Bank of Ukraine Oleh Churiy said this, Interfax-Ukraine reports.
“As of today, part of our forex reserves is managed by the World Bank. It is currently somewhere in the neighborhood of $1 billion,” Churiy said as part of an information day in Kyiv on Monday.
The World Bank is one of the largest investment managers for central banks, managing foreign exchange reserves of 53 nations across the globe, Churiy said.
This transfer allows to perform forex transactions similar to those implemented by the World Bank in staff training.
Other benefits associated with placing assets under World Bank management is access to the bank’s economic research, the opportunity for Ukraine’s National Bank staff to study remotely at the most prominent institutions and universities, and receive the World Bank’s advisory services.
The World Bank manages Ukraine’s foreign exchange reserves within the framework of restrictions set by the National Bank of Ukraine, including a list of highly liquid mechanisms, risk management, the requirements of liquidity and accountability, Churiy said.
Ukraine’s international reserves increased by 21% in 2017. As of 1 January 2018, its net foreign exchange reserves (the difference between the National Bank’s assets in foreign currency and the nation’s liabilities to the International Monetary Fund) rose by 58.5% to reach $6.7 billion. The central bank’s foreign exchange position (the difference between the National Bank’s assets and liabilities in foreign currency).