The regulator expects that foreign currency will soon start flowing from the sale of the new crop thanks to the functioning of the sea corridor.
The growth rate of the dollar in recent weeks may create additional risks for the stability of the foreign exchange market and, consequently, price stability. The National Bank of Ukraine is ready to respond, reports Interfax-Ukraine in connection with the press service of the NBU on Thursday, July 18.
“Therefore, the NBU is ready to take appropriate measures to ensure the stability of the foreign exchange market, which is necessary to further ensure price stability,” the statement said.
The regulator recalls that so far the dynamics of the exchange rate, despite the weakening of the hryvnia, is in line with the NBU’s goal of ensuring moderate inflation, confirming its approach to the target level of 5% in June.
The National Bank attributes the current increase in the dollar exchange rate to the expansion of net demand in the past two months under the influence of the increase in budget expenditures, a significant part of which is realized in the demand for money, the liberalization of money of May, as well as a temporary decrease in the money supply in the agricultural sector.
The NBU believes that there are now requirements to ensure the stability of the foreign exchange market.
“Foreign currency will soon begin to flow from the sale of new crops, and the functioning of the sea corridor creates opportunities for active exports of other product groups,” said the NBU, estimating the potential foreign exchange earnings at $24 billion.
In addition, this month the NBU expects to receive $3.9 billion from the United States.
“Accordingly, international reserves will once again exceed the level of $40 billion,” the regulator added.
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 for 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.