Sharp strengthening of the hryvnia affects the purchasing prices for grain

amid a seasonal decline in world prices for grains and oilseeds an additional pressure on the quotes in Ukraine was a sharp strengthening of hryvnia in the last week.

the Decrease in purchase prices for grain forcing manufacturers to hold back sales, leading to a gradual reduction in foreign exchange proceeds and , as a consequence, the next jump of the course. Therefore, in such situations, the most important actions of the national Bank, as regulator of the market. In recent days, due to the considerable increase of the proposals of the currency, the dollar was down 1% from 27.6 to $ 27.34/27,37 UAH/$.

During yesterday's session, the national Bank four times appeared in the auction, buying currency surpluses and gradually reducing the purchase price. The last two times he bought the currency at 27,385 UAH/$, not allowing the exchange rate to sink below.

According to estimates by market participants, yesterday the national Bank was the main buyer of currency by purchasing at least 100 million $. The main sellers currency steel company Naftogaz, which you must pay taxes for the 2nd quarter, as well as large exporters, who were trying to use the high rate on the decline.

Pressure on the dollar began on Wednesday, when the resident sold the currency to pay for purchased at auction of the Ministry of Finance hryvnia government bonds.

At auction on Tuesday, the Ministry of Finance managed to involve in the budget at 4.9 billion UAH for 4 months at 7% per annum and 189,8 million $ for 18 months by 3.6%. The Ministry of Finance continues to gradually reduce the cost of borrowing, therefore, rejected the application for the purchase of government bonds worth over UAH 1 billion under of 7.82% per annum too high a rate.

Stabilization of budgetary performance on the background of active borrowing and reaccreditation reduce speculative demand for foreign currency, which leads to a lower rate.