The difference between the official and cash rate of the dollar is mainly due to the presence of currency restrictions.
The head of the National Bank, Kirill Shevchenko, said that the official and cash exchange rate of the dollar in Ukraine cannot be equal due to currency restrictions. He said this in an interview for forbes.ua.
According to Shevchenko, the reaction of the cash rate after the increase of the fixed rate to 36.56 hryvnia per dollar is expected. In particular, it is situational and has psychological connotations reinforced by imagination.
“The difference between official and currency rates is mainly due to the existence of monetary restrictions, which, in turn, are necessary to protect international reserves. As long as there are restrictions, the difference in the value of this exchange also exists,” the head of the NBU said.
He noted that in order to maintain the difference in the exchange rate, the possibilities of banks to sell cash currency were expanded.
Earlier, the Deputy Head of the National Bank, Ekaterina Rozhkova, said that the turmoil in the cash foreign exchange market has subsided.
It can be recalled that the NBU explained its new decision to buy foreign currency from individuals. The requirement for banks and non-banking institutions to buy money from citizens at a rate not lower than the official one can potentially limit the strengthening of the Hryvnia.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.