NBU hinders the strengthening of the hryvnia

the IMF Experts believe that the hryvnia is undervalued by 10-20 %. On Wednesday at the interbank market increased slightly. Currency supply exceeded the demand, so the hryvnia had the opportunity to continue to strengthen. However, from the beginning of the auction, the NBU announced an auction to repurchase $ 50 million. Banks were allowed until 12:00 submit three competitive bids, and 12:30 was supposed to be announced the results. After the announcement by the regulator of the auction, the sellers are not worried about who will be able to redeem excess currency, and did not reduce the rate.

by 12:00 the dollar was trading at the rate of 24,88/24,91 USD. The results of the auction fully satisfy the sellers currency. The national Bank purchased $ 22.4 million of Bank statements for sale of $ 28.2 million at cut-off price is not higher 24,90 USD/$.

After the auction, the balance of supply and demand has actually leveled off, and starting from 13:00 to the end of trading, the dollar was trading within 24,88-24,89/24,90. Most transactions took place in the hallway of 24.89/24,90 USD/$, and the trading ended at the level of 24,88/24,90 USD/$.

in the environment were registered 425 transactions in the amount of 452,79 million dollars at the weighted average exchange rate 24,8971 UAH/$.

the strengthening of the hryvnia 10-20% will lead to falling prices for crops and will reduce foreign exchange earnings that destabilizie national currency. Even at the rate of 25 USD/$ negative trade balance of Ukraine in 2016, is maintained.