Ukraine’s currency market is still unable to balance itself. The demand for money from business and the population remains high.
The National Bank assessed the situation in the foreign exchange market at the end of 2022. This was reported by RBC-Ukraine with reference to the NBU Financial Stability Report.
Ukraine’s currency market is still unable to balance itself.
“Therefore, the NBU will continue to pay for its currency deficit and maintain a fixed exchange rate policy,” the analysis said.
At the same time, thanks to unprecedented aid from partners, international reserves exceeded pre-war levels by the end of November and reached $28 billion. This level covers three and a half months of future imports. An additional flow of international aid will allow maintaining reserves at an adequate level, the report notes.
The NBU recalled that the significant gaps in the balance of payments and the irregular flow of international aid in the first half of the year necessitated an adjustment to the exchange rate. The official exchange rate of the hryvnia against the dollar decreased by 25% at the end of July to 36.6 hryvnia per dollar.
“This decision, along with the adjustment of foreign exchange restrictions, the gradual increase in market rates in response to the June increase in the discount rate, the launch of the “grain corridor” has weakened the pressure on foreign exchange market. As a result, the volume of interventions by the NBU has decreased,” the NBU added.
Recall that the situation in the foreign exchange market last week (December 19-23) improved: the NBU reduced the sale of dollars by almost half to $441. At the same time, since the beginning of the year, the NBU has sold a record of 22.02 billion dollars and 1.678 billion euros.
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Source: korrespondent
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