The NBU explained what is happening with the national currency in the foreign exchange market and announced the forecasts

The NBU explained what is happening with the national currency in the foreign exchange market and announced the forecasts

© Getty Images

The regulator has sold at auction for 208 million dollars, to avoid significant fluctuations.

The National Bank of Ukraine claim that the appreciation of the U.S. dollar in August and September to almost UAH 27 is an integral part of the flexible exchange rate regime. That is, the fact that the hryvnia devalued, they say, is normal.

“Under such circumstances, the strengthening or weakening of the hryvnia exchange rate is determined by supply and demand. Volatility, which intensified in August-September, did not create substantial risks to inflation going beyond the targets (12% +/-3 PP in 2016 and 8% +/-2 PP for 2017)”, – said the press service of the regulator.

Today, October 5, at the official exchange rate of the NBU, the dollar is worth 25,86 UAH. This torque is less than a month ago, when at the beginning of September recorded the highest appreciation of the currency.

“The national Bank is, as before, did not interfere with the tendencies that prevailed in the foreign exchange market, but smoothing excessive exchange rate fluctuations through foreign exchange interventions. Since August 31, there were eight auctions to sell foreign currency, during which the national Bank granted the application for 208 million dollars”, – said the NBU.

In mid-September, the situation on the currency market began to stabilize.

“It even allowed the National Bank to enter the market to purchase foreign currency. In September, there have been three auctions for the purchase of foreign currency, while the NBU purchased 47,9 million US dollars to increase international reserves”, – reported in the national Bank.

Current gold reserves of 15.5 billion dollars. The NBU hope to increase them until the end of 2016 to 17.2 billion dollars.

The national Bank also explained that will positively affect the situation on the currency market of Ukraine:

– Steel prices, although it was adjusted in the autumn, remain today, at 27%, while iron ore prices are 31% higher than at the beginning of the year. This will ensure the increase of export revenues.

NBU expects an increase in exports of grain and other crops of high yield. According to recent expert estimates, the grain harvest can exceed 63 million tons. A record will be this year and the gross yield of oil crops, especially sunflower. All of this will be to offset the recent drop in the price of agricultural crops on world markets.

– Unlike previous years, the NJSC “Naftogaz of Ukraine” this fall will not create significant additional demand for currency, because have already acquired a significant portion of the currency to pay for natural gas in advance.

– Developed schedule of NBU purchases of foreign currency for the repatriation of dividends helps to more evenly distribute it in time. From the time when the Central Bank has allowed the repatriation of dividends in foreign currency in June, and almost to the end of September with this purpose the company bought 317 U.S. dollars, created only about 3% of the demand for currency in the interbank market.

Earlier the head of national Bank Valeria Gontareva announced the autumn forecasts for the hryvnia in the currency market.

Recall that in the state budget for 2016 laid the dollar 24,1 UAH, and at the end of the year, 24, 4 hrn. In the draft budget for 2017 laid down the dollar to 27.2 UAH.

A record in its history, the hryvnia has set 26 February 2015. Then the official exchange rate of the NBU, the US dollar amounted to 30.01 UAH, and the Euro – 34,04 UAH.

The US dollar exchange rate of the NBU
Create your own infographics

The Euro exchange rate of the NBU
Create your own infographics

Average annual exchange rates of USD from NBU
Create your own infographics