Ukraine's central bank has cut limits on local banks' long foreign currency positions to 5 percent of regulatory capital from 20 percent, according to a document obtained by Reuters. The move is aimed at "maintaining stability on the foreign exchange market", according to the central bank's decree which takes effect from June 29 and gives banks 30 days to adjust their positions.
The limit on short positions remains unchanged at 10 percent of regulatory capital. The central bank spent an estimated $1.2 billion on interventions to support the local hryvnia currency in the first three weeks of June, analysts say, after it allowed intraday trading.