Selling government bonds has strengthened the hryvnia on the interbank market

the Ministry of Finance at yesterday's auctions on placement of hryvnia government bonds attracted to the budget is UAH 2.7 bn.

High interest of foreign investors in domestic government bonds in national currency allowed to carry out the plan of borrowing to the state budget earlier than planned. This allowed the Ministry of Finance to limit the volume of issue of t-bills at auction and transfer the demand for the securities with long maturity.

Thanks to the auction exchange rate of hryvnia on the interbank market with the morning 25,70 UAH/$ by the end of the auction strengthened to 25.52 UAH/$.

After the non-residents have sold significant amounts of currency to buy government bonds, the dollar slipped somewhat. This benefited the importers, who realized that further appreciation will not, and began to accumulate the currency.

Until the end of 2019 Ukraine on the domestic and external debts need a sum equivalent to 169 billion, of which $ 71.4 billion UAH of hryvnia government bonds, and the rest - payments on foreign currency liabilities.

In August-September on government bonds will be paid 70 billion, which presumably will be used to purchase non-residents of the currency to remove the investment abroad. It will significantly put pressure on the hryvnia, which immediately responded by strengthening even if it is discovered during the auction of 2.7 billion UAH.