The strengthening of the hryvnia pressure on purchasing prices for grain

Monday, the hryvnia resumed its strengthening on the interbank market, primarily due to the increase in sales of currency earnings by exporters, which in the end of the month need the national currency for the budget calculations.

small amounts reimbursed in February of VAT forced exporters to actively sell the currency. During 1-24 February, the state Treasury reimbursed VAT in the amount of 3.2 billion UAH, whereas in January was returned of 19.71 billion. Overall, in 2018, taxpayers are reimbursed 131 billion, an average of 10.9 billion UAH monthly.

Yesterday morning on the interbank market with quotes of 27.00/27,025 to the end of trading, the dollar dropped to 26.90/26,93 UAH/$.

the national Bank in "anonymous" mode repurchased approximately 10 million dollars of 27.02 UAH/$, which has not helped to reduce the pressure of oversupply.

Sharp strengthening of the hryvnia exchange rate lowers purchasing prices for agricultural products and slow export growth.

Loss from March 1, the mandatory sale of foreign exchange earnings up to 30% will lead to reduction of the currency on the interbank market, which will increase pressure on the hryvnia.