The dollar on the interbank market again fell below 25 UAH/$

on the last day of October the dollar on the interbank market continued to decrease and fell to 24.75/24 and 78 UAH/$ in comparison with 25,10/25,13 UAH/$ a week ago and 24,90/24,93 UAH/$ a month ago, while experts predicted its increase to 25.3 to 25.5 UAH/$.

the Reason to strengthen the hryvnia remains the excess of the sentences of foreign currency on demand thanks to strong exports and high levels of borrowing through government bonds.

at the end of the month exporters were actively selling the currency to engage in economic calculation, while non-residents to purchase government bonds, which sharply increased the volume of proposals, so that the national Bank through the Matching system has purchased excess $30 million.

on Tuesday at the auction of government bonds the Ministry of Finance brought in a budget of 1.6 billion through the sale of mostly two-year hryvnia bonds. At the auction, the volume of investments of non-residents in Ukrainian government bonds rose by 0.9 billion UAH to 99,55 billion UAH since the beginning of the year 16 times or by 93.2 billion. The share of non-residents in Ukrainian government bonds increased from 1% in the beginning of the year to 12.3%.

According to experts, the average annual rate at which the nonresident sold foreign currency to buy government bonds, is 26.3 UAH/$, so long as the current rate exceeds this level, it is unlikely that the resident will begin to withdraw capital. However, even the fall of the hryvnia to 28-28,5 UAH/$, will do for non-residents the rate of return on hryvnia government bonds at 5-6%, which corresponds to the rate of return on foreign bonds.

the Government plans next year to increase the involvement of funds in the budget through the sale of government bonds in national currency, which will increase the inflow of foreign currency from investors and will keep the exchange rate under the pressure of additional foreign exchange earnings.