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Ukrainian economists hail Ukraine-China currency swap deal

KIEV, June 26 (Xinhua)

One of Ukraine's top economists on Tuesday hailed the 15-billion-yuan (2.36 billion U.S. dollars) currency swap deal between central banks of China and Ukraine.

"It's very good that this deal was signed. This is the beginning of a new way of collaboration between our countries," said Alexandr Starodubzev, chief economist and CEO of the Kiev-based "Opening" brokerage firm, in an interview with Xinhua.

The People's Bank of China, China's central bank, inked the deal with Ukraine's National Bank(NBU) earlier Tuesday.

Ukraine and China now can avoid the dollar in their trade, which is very positive, Starodubzev noted.

He noted, however, that NBU has to refine the mechanism of payment in yuan to establish a stable exchange rate of the Chinese currency against the Ukrainian hryvnia.

Another Ukrainian economist, Vladimir Kundzich, told Xinhua he supports the deal.

"National Bank of Ukraine will increase the diversification of its international reserves, which now depend heavily on the floating rates of the euro and the dollar," said Kundzich, who serves as a managing partner in Kiev-based "Rada Capital" Investment Company.

China is a major manufacturer, exporter as well as importer of commodities from developing countries, Kundzich said, adding that China is now a key economic partner of Ukraine. 

"After signing this agreement, the economic ties between the two countries will be enhanced, which means Chinese businessmen and investors will pay more attention to Ukraine."

Later on Tuesday, Ukrainian National Bank said in a statement on its website that the deal will enhance bilateral financial cooperation between the two sides, and promote investment and trade while ensuring financial stability in Ukraine.

"The agreement between the two central banks will boost the export-import operations between the countries and develop investments," read the statement.

The two countries have set a goal of lifting bilateral trade volume to 10 billion dollars this year.


 

 

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