Riksbank concludes agreement with National Bank of Ukraine

Sveriges Riksbank is entering into a swap agreement with the National Bank of Ukraine. The agreement covers the purchase and sale of a maximum of USD 500 million against the Ukrainian hryvnia.

“With this agreement, we, along with the IMF and other lenders, are helping to boost confidence in Ukraine's economic reform programme. In doing so, we also reduce the risk of financial instability in our neighbouring region which could have a negative impact on the Swedish economy," says Governor Stefan Ingves.

Since March 2015, Ukraine has been receiving financial support from the International Monetary Fund (IMF) via a four-year Extended Fund Facility Programme. The Rikbank's swap agreement with the National Bank of Ukraine is closely linked to the conditionality laid down by the IMF and is in line with previous support agreements concluded with foreign central banks in times of financial disturbances.

The Riksbank has also concluded an agreement on what is known as "technical assistance" with Ukraine. This means that the Riksbank will cooperate with the National Bank of Ukraine to transfer knowledge and exchange experience within important central-bank-related areas.

The swap agreement with the National Bank of Ukraine will run for six months.

Executive Board Member Martin Flodén entered a reservation against the decision.

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