Ukraine and China have signed a currency swap agreement worth $2.4 billion, according to the National Bank of Ukraine (NBU). Ukraine expects it will relieve pressure on its currency which has lost above 40 percent against the US dollar in a year. The three year agreement was signed in Shanghai by the governor of the National Bank of Ukraine(NBU) Valeria Gontareva and the governor of the People’s Bank of China Zhou Xiaochuan, according to NBU’s press release published on Friday. Ukraine will provide some 54 billion hryvnia and China 15 billion yuan within the swap line.

“This agreement is extremely important for our countries, being strategic partners, and will promote the economic development of both countries. The funds received under the agreement may be used to finance commercial operations and direct investments between the two countries,” Gontareva said. The practical implementation of currency swap arrangements will cut the demand of importers for foreign currency, which will lower the pressure on the hryvnia exchange rate and help stabilize the situation in the domestic money market, she added. FULL REPORT