The dollar on the interbank market dropped to 23.54 UAH/$

Under pressure of active sales of foreign currency by non-residents wishing to purchase government bonds, the dollar on the interbank market dropped to 23.54/23,57 UAH/$. The MinFin yesterday sold t-bills at average yield of 12% per annum on the amount 4,384 billion, the demand for 4-year-old paper 4 times oversubscribed. At the previous auction a week ago has sold securities at USD 4.655 billion.

Yesterday on the interbank market the main backuptm currency was a national Bank, which virtually dictate the market rate, for a long time buying the currency through Matching. He acquired almost the whole offered volume sellers of foreign currency, and is 50-90 million $, whereas usually per session redeemed up to $ 30 million.

the Decline of the dollar continues to increase the loss of domestic exporters and manufacturers, and worsening financial status and so few suppliers of foreign exchange, which can lead to the growth of negative balance of trade. Weak dollar reduces budget revenues by reducing customs and tax fees, therefore, according to experts, the budget deficit in 2019 could reach 70-80 billion, which will also need to close loans.

the Bank almost daily buys the excess foreign currency on the interbank market, what keeps the dollar from a collapse to a new strategic level 23 UAH/$.

the Increase in balances on correspondent accounts of banks from 15.6 billion to 60.2 billion will support week currency quotations in the interbank market.

the Minister of economy T. Milovanov in an interview with Deutsche Welle said he did not believe in the strengthening of the hryvnia in 2020 to 20 UAH/$. He said that his Department is considering two scenarios – 3 and 6 billion dollars of investment per year, which will keep the rate at the level of 2019. But investment in the amount of 10-20 billion $ can significantly lower the rate.