The national Bank continues to struggle with the excessive demand for foreign currency

In Ukraine, the hryvnia continues to depreciate, amid falling global markets and panic caused by the pandemic virus Covid-19. For two weeks the rate has fallen from 24.5 to 27.1 UAH/$.

the Introduction of quarantine in the country and travel restrictions slow the spread of the disease, but would reduce state revenues, which in the first quarter and was 20% less than planned. This was the main factor in the growth of the dollar on the interbank market, to which later was added an excessive demand for cash currency. For untimely delivery of the banks disappeared currency, after which the gap between cash and non-cash dollar rises to 1-1,5 UAH/$, and some exchanges have started to offer currency for 29 UAH/$.

, the NBU said that the main reason for the devaluation of the hryvnia in the last two weeks, there is panic caused by the pandemic and the global economic crisis that is coming. However, the national Bank will support the currency market and the liquidity of the banking system, because it has the necessary tools and instruments.

so far, the NBU does not intend to introduce any currency restrictions because they will negatively react to physical and legal persons.

During the last 5 working days the total demand savaluto amounted to 2.1 billion $, of which:

the

non - resident $8 million,

the Ukrainian company – almost 1.8 billion $.

• citizens have bought $300 million,

To support the hryvnia, the NBU within two weeks sold at auctions 1.3 billion $ and good money, because last year he acquired on the interbank market nearly $ 6 billion on average rate of 24.5 UAH/$.

Yesterday arrived in Ukraine the first flight with cash, and in the coming days it is expected another shipment of a significant volume of currency that will help to get the excitement in the cash market.

Yesterday on the interbank market, the NBU sold $ 100 million in 26,98 UAH/$, 100 $ million for 27,10 UAH/$ and another 100 $ million of 27.15 at UAH/$. This has reduced speculative demand and at the end of the session the exchange rate returned to the level 27,01/of 27.15 UAH/$.

When the exporters realize that the rate reached the maximum, then activate the sale of foreign currency and the hryvnia will be strengthened. The increase in the supply of cash currency in banks will reduce speculative demand from the population.

the Introduction of quarantine will reduce the consumption of imported products and the demand for currency, and the continuation of quarantine will force citizens to sell foreign currency and not to buy it.

At yesterday's auction Ministry of Finance sold the 10-month t-bills at 3.5% per annum in the amount of 71.6 million $ in attracting budget 1,899 billion. This confirms the possibility of attracting resources to the world market, as the decline in fed rates to 0.25% will force investors to look for assets for allocation of funds at higher interest rates, though with greater risks.