The dollar on the interbank exchange rate broke the record, and the period for the return of foreign exchange earnings from agricultural products was increased to 120 days

Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, D. Hetmantsev, reported that the National Bank has extended the terms of return of foreign currency proceeds from the sale of agricultural products from 90 to 120 days. Such a decision should support exporters who are opening new sales markets in Asian and African countries.

In April, D. Hetmantsev sent a letter to the Cabinet of Ministers in which he proposed to increase the deadline for returning foreign exchange earnings for farmers to 180 days, as several agricultural associations complained about an unjustified reduction of this deadline to 90 days. The shortening of the revenue return period did not have a positive effect on the market, it affected "white" exporters who, after restrictions on the EU market, began to sell their products to countries in Asia and Africa, where payment terms are longer.

The interbank dollar continues to rise in value, and in July the exchange rate increased by another 0.7% to a record 40.8-40.82 UAH/$ (+10.5% for the year) against the background of a reduction in agricultural exports in June and an increase in import volumes.

On July 11, the NBU set the official exchange rate for the dollar at UAH 40.7146/$, and the euro at UAH 44.0776/€.

In view of the missile attacks by the Russian Federation, which destroyed energy facilities and critical infrastructure, the National Bank lowered the forecast for GDP growth in 2024 from 3.6% to 3%, but noted that despite the attacks, the economy continues to recover, and real GDP in In the 1st quarter of 2024, it grew.

In the period from July 1 to 5, the NBU reduced the sale of foreign currency at the interbank level in comparison with the previous week by $39.24 million to $631.66 million, acquiring at the same time $750,000. In total, in 2024, the NBU sold $14.918 billion interbank and purchased $117.35 million, while in 2023, the sale of currency reached $28.829 billion, and the purchase - $219.85 million. Currently, the pace of currency sales remains at a high level, which corresponds to last year.

Increasing exports of agricultural products of the new crop and metal will support the hryvnia exchange rate, but it will continue to depreciate due to the exhausting war of the Russian Federation against Ukraine.

According to Ukrmetallurgprom, in the first half of 2024, domestic metallurgists increased the production of pig iron by 22.3%, steel by 37%, and rolled products by 32.2%. The average daily production of steel in June amounted to 24,500 tons, which is the highest figure in the 28 months of the war.

Western countries promise Ukraine significant financial support in 2024 and 2025, which will allow the exchange rate to be kept within 40-42 hryvnias/$.

In 2024, Ukrainians bought $5.3 billion more in foreign currency than in the whole of 2023, which indicates the expectations of citizens regarding the further devaluation of the hryvnia.