Poland's central bank grants up to USD 1 bln USD/UAH swap to Ukrainian peer

"After talks with the Ukrainian side, the NBP decided to grant a swap in USD rather than in PLN," the bank said. Rafał Guz/PAP

Poland's central bank NBP has offered an up to USD 1 bln USD/UAH swap line to Ukraine's counterpart, the Polish bank has said in a statement.

"Taking into account the extraordinary circumstances related to Russia's aggression on Ukraine, which could have a negative impact on the stability of the financial system in Poland, the central bank has made available as of March 21, 2022 to the Ukrainian central bank, a swap line on USD/UAH paid in the amount of USD 1 billion," The National Bank of Poland (NBP) said on Monday.

"After talks with the Ukrainian side, the NBP decided to grant a swap in USD rather than in PLN," the bank said.

On February 24, when Russia attacked Ukraine, NBP granted an FX swap to Ukraine's central bank of up to PLN 4 billion (EUR 850,000).

A currency pair swap line is an agreement for the mutual exchange of currencies between two central banks. On its basis, the central bank may obtain cash (liquidity) in a foreign currency from the central bank that issues this currency.