The Bank slows the strengthening of the hryvnia on the interbank market

2019-02-12 12:03:24
Machine translation
The Bank slows the strengthening of the hryvnia on the interbank market

last week, the interbank hryvnia strengthened to led light bulbs 26,95 UAH/$, but on Friday the rate fell back to a level of 27.1-27,12 UAH/$. Experts predicted a gradual return of the course in the limits of 27.3-27.5 per UAH/$, but on Monday, the torque again increased to 26.98-27,05 UAH/$ and closed at the level of 27.04-of 27.08 UAH/$.


Importers discreetly bought the currency in expectation of a depreciation, while the offers exceeded the demand. Although the decision of the NBU on currency market liberalisation, which allows market participants to freely buy hard currency, and the decline since March 1, the mandatory sale of foreign currency earnings from 50% to 30% should increase the demand and reduce the volume of offers in the interbank market.


However, the auction went nonresidents sold foreign currency to participate in today's auction the Ministry of Finance on government bonds. Recall that in January of hryvnia government bonds were sold for $ 28,6 billion UAH.


the Increase in foreign exchange revenues and foreign exchange earnings from the buyers of government bonds led to the strengthening of the hryvnia by 2.8%. To avoid abrupt jumps of the NBU in the period 4-8 February bought 175 million $ (75 $ million - through a system of Matching, and $ 100 million - at a uniform rate) than gave the signal to the market that will not allow the dollar to fall below 27 UAH/$.


the government's Decision on the abolition of restrictions on settlements in hard currency in the secondary market operations with government bonds denominated in foreign currency, also eased the pressure on the interbank market from the securities market. The decision stated that this restriction "was contrary to the law "On currency and currency transactions" and are not allowed for banks which are primary dealers, to make settlements with investors in the currency. Recall that in January of t-bills with a yield of 6.25-6.5% per annum was realized in the amount of 582,2 million $.