KIEV, Sept 24 (Reuters) - Ukraine's central bank has ordered local banks to deposit parts of foreign short-term loans they take up into a special account to temper the influx of speculative capital, a banking source told Reuters on Friday.
The measure may cut the inflow of foreign currency in the
short term prompting hryvnia
Citing a letter circulated by the regulator among banks, the source said the central bank was reviving an old regulation -- requiring banks to deposit 20 percent of money borrowed abroad for less than 183 days with it -- from October 1.
Trading long-term stability for short-term emergency relief, the central bank dropped the rule in 2008 to support the hryvnia which had come under pressure from falling export revenues and plunged over 60 percent at the end of 2008.
The hryvnia, which had been strengthening for most of this year as Ukraine's exports, dominated by steel and metals, recovered, weakened this month as demand for dollars spiked.
The central bank has intervened heavily to support the currency and said it would not weaken beyond 8.0 per dollar this year [ID:nLDE68M0XH]. (Reporting by Yuri Kulikov; Writing by Olzhas Auyezov)