The National Bank of Ukraine (NBU) will cooperate with the UK’s company Vaultex on converting to the delegated cash circulation model, according to the press service of the central bank.
The relevant Memorandum of Understanding Supporting NBU’s Cash Circulation Strategy was signed on October 7, 2020 by NBU Governor Kyrylo Shevchenko and Vaultex CEO Phil Vaughan.
Considering its longstanding experience in managing cash circulation, Vaultex will support the NBU with the delivery of the elements of the Strategy of Ukrainian Financial Sector Development until 2025 related to further improving the cash circulation system of the country.
In particular, expertise will be shared on the following issues: creating uniformity of cash processing standards, rules, systems and frameworks; developing and implementing the delegation model of cash circulation considering the UK experience; methods, practices and processes which will lead to a significant reduction in the costs associated with the cash management cycle.
“In 2016, following the UK example, Ukraine chose a delegation model of cash circulation and already enjoys its benefits. The NBU strives to continue reducing expenses of our country on cash circulation. The regulator is happy to share its expertise and learn from the global community,” said Shevchenko.
As reported, in 2016, the NBU launched a gradual transfer from a partially controlled model of cash circulation to the delegation model. The delegation model of cash circulation implies that the NBU moves its cash stocks to the authorized banks for storing to ensure cash supply in the regions.
Vaultex is one of the largest British cash processing companies. The company is one the four members of the cash circulation model in the United Kingdom – Note Circulation Scheme (NCS), authorized by the Bank of England.