The National Bank called the reasons for the growth of the hryvnia

Regulator interventions to sell foreign currency in the interbank foreign exchange market have been dramatically reduced.

As a result of March, the situation improved both in the non-cash and in the cash foreign exchange market of Ukraine. This was stated in the monthly macroeconomic and monetary review of the NBU, published on Thursday, April 6.

It is indicated that the intervention of the regulator for the sale of foreign currency in the interbank foreign exchange market has been dramatically reduced.

“This is mainly due to improved expectations in the context of a better situation in the energy sector and the lack of equity financing of the budget deficit, as well as the narrowing of the trade deficit,” the analysis said.

According to the NBU, the spread between cash and the official exchange rate is narrow, facilitated by the calibration of currency restrictions, the creation of alternative instruments to protect savings from exchange rate fluctuations, and the NBU’s measures to increase the attractiveness of the Hryvnia. saving

“Narrowing the spread removes market distortions and increases the flow of money through official channels,” the review said.

Recall that in March, Ukrainians reduced the purchase of foreign currency in banks. Demand for non-cash money is also fragmented.

It was also reported that following the March results, the NBU sold the lowest currency in four months.

At the same time, in the cash market, the dollar exchange rate fell by about 2 hryvnias from 40 to 38 hryvnias per dollar. In early April, the US dollar continued to decline against the hryvnia.

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