The current changes in the exchange rate and a certain moderate devaluation of the Hryvnia do not create risks for financial stability, the National Bank says.
Current fluctuations in the hryvnia exchange rate do not pose a risk to financial stability. This point of view was expressed by the Director of the Financial Stability Department of the National Bank of Ukraine Pervin Dadashova in an interview with Interfax-Ukraine, published on Wednesday, July 17.
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According to him, there is a change in the level of dollarization (the ratio of foreign currency deposits to all funds), but this is mainly a technical effect.
“A change in the exchange rate immediately leads to a revaluation of foreign currency deposits and an increase or decrease in their hryvnia equivalent. Apart from this technical effect, we do not see a trend towards an increase in dollarization, so there is no cause for concern,” he said.
Dadashova believes that this is the best confirmation of the thesis that the current changes in the exchange rate and a certain moderate devaluation do not create risks for financial stability.
“After all, it has no consequences of reducing confidence in the national currency, neither business nor population seeks to switch from hryvnia instruments to other means of saving at any cost. he said.
Dadashova said that since January, Hryvnia deposits have increased by 8%. And the dynamics of deposits in the longer term show that everything is normal both in the population’s trust in banks and in the accumulation of funds in accounts.
“Our estimates confirm that the population leaves a constantly higher part of their income in their accounts than before 2022. This indicates a certain increase in the propensity to save, also said In the report, the income of the population is generally growing, so these incomes are a reflection of what we see in the economy. In terms of funding, there is no threat to the liquidity of the banks today,” she assured.
Let us remind you that in recent days the dollar and euro have been growing at a record speed against the Hryvnia. The previous day, new historic highs were recorded.
In total, the cash dollar exchange rate has been growing for four consecutive months. In June, it increased by 1.7% to UAH 40.85.
At the same time, the Cabinet of Ministers predicts a further increase in the dollar exchange rate. According to the Budget Declaration, in 2025 the average exchange rate will increase by 10% to 45 UAH/dollar. At the same time, the budget for 2024 includes an average exchange rate of 40.7 UAH/dollar and 42.1 UAH/dollar in December.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.