The national Bank explained what was happening with the hryvnia on the currency market

In recent weeks UAH is actively strengthened in the official exchange rate of the national Bank and the dollar and the Euro, respectively, cheaper. The NBU explained by the fact that after the holidays, increased foreign exchange earnings.

“The strengthening of the hryvnia, which is observed in recent weeks, shows that the place is unfavorable seasonal factors, which dominated in December and January led to a temporary devaluation pressure on the hryvnia, has taken a more favorable factors, under whose influence the end of January on the interbank market increased the supply of foreign currency from customers reduction in demand”, – said the Deputy head of the NBU Oleg Churiy.

He called the main reasons due to which the hryvnia strengthened.

“First, the increased inflow of foreign currency from non-residents who participate in auctions of the Ministry of Finance on placement of government bonds in local currency. Since the beginning of year the volume of hryvnia government bonds in the portfolio of non-residents increased more than two times – from UAH 5.1 billion to UAH 12 bn. Second, reduced supply of foreign currency from the agricultural enterprises after its seasonal decline in January. Third, the high supply of foreign currency contributed to a continued favourable external environment for the steel industry. In addition, the state of the currency market was influenced by an improvement in devaluation expectations and an increase in the supply of foreign currency from clients in the cash segment of the currency market with the second half of January, the gradual strengthening of the hryvnia. In particular, the net supply of foreign currency on the spot market rose in January to 257 million dollars, which is the highest volume for the month of July 2017,” explained Cury.

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