A commission consisting of representatives of the Ukrainian Ministry of Finance and the National Bank of Ukraine (NBU) approved a decision to prohibit foreign investment in T-bills with a circulation period shorter than 1 year.
According to the Ministry of Finance, the respective orders of the NBU and the Ministry of Finance are already in place and now the regulation is pending its registration with the Ministry of Justice of Ukraine in order to come into force, said HVB Ukraine representative Bohdana Yefremova.
The Ministry of Finance insists that the initiative with regard to the restriction was taken by the NBU, which argued that considerable activity of foreign investors since January 2005 applied substantial pressure on the currency market and forced NBU to excessively purchase foreign currency, thus enlarging the monetary aggregates.