In Ukraine, risks remain for the foreign exchange market, prices and financial stability, the National Bank said.
The continuation of international aid to Ukraine led to an increase in budget spending in March, which caused the dollar to rise. This was stated in the results of the meeting of the NBU Monetary Policy Committee (MPC) on April 24, published on Monday, May 6.
“The moderate devaluation of the hryvnia over the past month mainly reflects the effects of catching up with budget expenditures, which were restrained at the beginning of the year due to delays in external financial assistance,” the report said.
At the same time, the situation in the foreign exchange market remained under control.
“The managed flexibility regime ensures moderate bilateral exchange rate fluctuations The negative balance of the NBU’s interventions in the first quarter has been significantly reduced, in particular, due to measures to strengthen foreign exchange management and the surge in export earnings amid expanding supplies by. the sea corridor,” added the National Bank.
Participants in the meeting also mentioned the “persistence of risks for the foreign exchange market, prices and financial stability in the forecast horizon.”
The NBU recalled that since mid-March there has been significant progress on the issue of external financing. In particular, in March, Ukraine received more than $9 billion from international partners, and in April, the second tranche from the EU in the amount of 1.5 billion euros under the Ukraine Facility program.
In addition, the United States approved a long-awaited military and financial aid package for the current year.
“As a result, the risk of lack of external financing in 2024 is significantly reduced, and Ukraine can count on about $38 billion from international partners foreign exchange market,” it was stated in the message.
Let us remind you that in April in the cash market the dollar selling rate increased by 1.8%, to 39.64 UAH/dollar. By the end of the month, it rose above 40 UAH/dollar, but subsequently fell slightly. The official rate updated historical highs and reached 39.78 UAH/dollar on April 22.
Source: korrespondent
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