Kernel signs first non-deliverable forward contract in Ukrainian market

One of Ukrainian banks and the large Ukrainian agricultural holding Kernel signed a first non-deliverable forward (NDF) contract in the history of Ukraine last week. “This is the first transaction to hedge currency risks of this type in the Ukrainian market. Earlier, deliverable forward contracts were also concluded in the market, but their share is still insignificant and has great potential for growth,” the regulator said in a statement last week.
According to NBU Deputy Governor Oleh Churiy, with a floating exchange rate, business owners and financial directors should pay attention to hedging tools that are already available in Ukraine. These are, in particular, deliverable and non-deliverable forward contracts, which can be concluded with banks for export-import operations or loans from nonresidents.
Source: National Bank of Ukraine (NBU)