The hryvnia on the interbank market fell below the psychological level of 26.5 UAH/грн

The hryvnia exchange rate on the interbank market continues to strengthen against the background of an increase in currency supply, and yesterday crossed the psychological level of 26.5 UAH/., falling to 26.41-26.43 UAH/..

To maintain the exchange rate, the National Bank was forced to go to auction three times and buy back excess currency, first at the rate of 26.5 UAH/., then no higher than 26.43 UAH/., and later until the close of trading at the rate of 26.395 UAH/..

The main reason for the increase in foreign currency receipts was a large harvest of agricultural crops and high starting prices for cereals and oilseeds, especially sunflower and corn, the harvesting and active sales of which were started by producers.

Additionally, foreign exchange earnings are stimulated by high rates on government bonds, which non-residents are interested in.

However, at yesterday's auction, the Ministry of Finance attracted only UAH 2.465 billion to the budget, as it was in no hurry to increase yields, which led to a decrease in demand for securities from investors.

The weighted average yield of securities was:

• 6-month-olds-9.70%,
• 1-year-olds – 11.50%,
• 1.5-year-olds – 11.57%,
• 2-year-olds – 12.40%,
• 3-year-olds – 12.49%,
• 5-year-olds-12.75%.

Rising energy prices will increase the volume of imports and demand for foreign currency, which will soon balance the supply and demand of foreign currency on the interbank market. Therefore, bankers predict that by the end of the year the hryvnia exchange rate will stabilize at the level of 26.7-27.2 UAH/..