A new auction for the sale of government bonds strengthened the hryvnia exchange rate to a 9-month high

2021-05-19 12:00:51
Machine translation
A new auction for the sale of government bonds strengthened the hryvnia exchange rate to a 9-month high

< span style="font-size:14px;">due to significant currency receipts from non-residents who bought government bonds at the next auction, the hryvnia exchange rate on the interbank market yesterday strengthened from 27.52/27.52 UAH/. to 27.40/27.42 UAH/., and the National Bank on May 19 set the official Hryvnia exchange rate against the dollar at 27.4368 UAH/., which is the best value of the last 9 months. At the same time, the regulator did not take part in the auction, and did not buy back excess currency to stabilize the exchange rate.

 

< span style="font-size:14px;" > it is worth noting that the interbank market did not respond to the political situation in the country related to the resignation of Economy Minister Ihor Petrashko, whose resignation was voted for yesterday by the Verkhovna Rada on the basis of his own resignation letter.

 

< span style="font-size:14px;">the Ministry of Finance at the auction on May 18 attracted UAH 14.158 billion to the budget by placing the following government bonds:< / span>< / p>

  • < li> < span style= " font-size: 14px;" > maturing on 11.08.21 at 8.48% per annum in the amount of UAH 529.75 million,< / span> < / li>
  • < span style= " font-size: 14px;">maturing on 03.08.22 at 11.19% in the amount of UAH 2.03 billion,< / span> < / li>
  • < span style= " font-size: 14px;">maturing on 23.11.22 at 11.30% in the amount of UAH 248.24 million,< / span> < / li>
  • < span style= " font-size: 14px;">maturing on 24.05.23 at 12.02% in the amount of UAH 1.624 billion,< / span> < / li>
  • < span style= " font-size: 14px;">maturing on 02.02.23 at 3.90% in the amount of 6 62.93 million, < / span> < / li>
  • < span style="font-size:14px;" > maturing on 17.02.22 at 2.50% in the amount of €238.43 million.
  • < / ul>

    compared to the previous auction, the weighted average yield rates remained almost unchanged.

     

    < span style="font-size:14px;">the economic downturn, the consequences of lockdowns, and the reduced influence of the real sector on the movement of the financial, currency, and stock markets lead to significant imbalances in the country's economic development. Against the background of increasing public debt, constant rotation of top officials, outright corruption and frequent scandals in the power elite, the dependence of the domestic market on financial speculators is increasing.

     

    < span style="font-size:14px;">the strengthening of the hryvnia exchange rate will negatively affect the purchase prices of agricultural goods, which will further reduce export activity at the end of the season and lead to a reduction in foreign exchange earnings, and accordingly, to an increase in the dollar exchange rate.

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