The dollar on the interbank market increased to 28.5 UAH/$

Last week the exchange rate on the interbank market grew amid a budget crisis in Ukraine, as the authorities for failing to attract credit funds were forced to stop funding unsecured expenses for the month to the end of the year.

From the Monday 28,35/28,37 UAH/$ on Friday, the dollar rose to 28 and 51/28,54 UAH/$.

This increase primarily related to increased purchases of foreign currency by nonresidents against the backdrop of the economic crisis in Ukraine and the possible devaluation of the national currency transfer funds in foreign currency.

Reduction of imports on the background of stable export has a positive effect on the balance of payments of Ukraine, which has become surplus, and therefore reduces the pressure on the hryvnia on the part of importers.

during the week the national Bank did not come out on the interbank market, allowing the market itself to achieve equilibrium. However, the growth rate is forcing exporters to restrain sale of foreign currency and increases the devaluation expectations, especially given the news about the suspension of financing of budgetary expenditure. November 23, the state Treasury stopped funding for all unprotected expenses, whereas last year such a move by the government came on December 17.

According to experts, the budget deficit in November and December will amount to 178 billion UAH, and in General, over this period according to the budget 2020, the government should Finance the cost of 353 billion.

to Compensate for the budget deficit could have a new tranche of the IMF, or even the Foundation's mission, which would have opened for the country the funding from the EU, world Bank or allowed to enter the market of Eurobonds. However, assistance from the IMF the government no longer counts, and political steps of the President and the government almost paralysed cooperation between Ukraine and the IMF.

Therefore, the government raises the loan funds through bonds. At the auction on November 24 the Ministry of Finance attracted a budget of 16.77 billion through the sale of the following bonds:

the

6 months at 10.25 per cent in the amount of 3.36 billion UAH,

1 year at 10.75% on the amount of 522 million UAH,

2 years below 11.4% on the amount 408,6 million UAH,

4 years at 11.7 per cent in the amount of 192.5 million.

• 4.5 months at 10% per annum on the sum of 7 billion UAH,

was Also sold government bonds in the Euro under of 2.45% per annum on the amount 157,72 million euros.

the Increase in sales of government bonds will increase inflow of foreign currency from non-residents on the interbank market, which will constrain the growth of the dollar.