Selling government bonds once again strengthened the hryvnia on the interbank market

on Yesterday auction the Finance Ministry sold t-bills in the amount of 2.75 billion UAH, most of which (2.06 billion UAH) were raised under long-term securities for a period of 3 years and interest rate of 16.06% per annum. On the bonds for a period of 1 year the interest rate was 14.5%, 2.5 months – 18.5%.

Due to the large amount of currency from non-residents that participated in the auction, the rate for the session fell 24,76/24,80 UAH/$ to 24.74/24,76 UAH/$. Only redemption by the national Bank through a system of Matching 20 million $ for 24,77 UAH/$ kept the currency from falling to a level of 26.6/of 26.65 UAH/$.

This once again confirms the instability of the exchange rate on the interbank market, when even finding currency from non-residents in the amount of 70-100 million us $ has significantly fallen off course, but to remedy the situation, it was enough to buy only the excess $20 million.

the Growth of foreign trade deficit and increasing the volume of imports increases demand for foreign currency from importers, so the absence or reduction of foreign currency proceeds from foreign loans will increase pressure on the hryvnia.

During January-July the foreign trade deficit of Ukraine increased in comparison with the corresponding period last year, from 4.16 to 4.93 billion $, in particular, exports of goods increased by 7% to 28.7 billion $, import – 8.5% up to of 33.68 billion $. The ratio of exports and imports amounted to 0.85, as in January-July 2018 this figure was equal to 0.87.