The dollar on the interbank market will continue to go up after the resignation of the head of the NBU

Yesterday, the head of the national Bank of Ukraine Yakov Smoliy resigned, explaining his decision to "systematic political pressure and an attempt to prevent attempts to undermine the institutional framework of the Central Bank of the country."

on the Eve of the NBU Council refused to consider the appointment of Oleg Chura for the position of Deputy Chairman of the NBU on the second 7-year term that, in the opinion of the NBU Board, contrary to law.

Also, the NBU Council has considered the action of the Board regarding individual measures of monetary and regulatory, as well as their impact on the economic and social situation in the country, then acknowledged that the tightening of monetary policy in 2018-2020 substantially distorted the economic incentives of activity of the banks and also reduced the level of lending to the economy. Therefore, monetary and exchange rate policy of the NBU in 2019, was found to be ineffective.

At the meeting of the NBU Council approved the recommendation of the Cabinet to the Board of the national Bank of the following matters:

the

activation of attracting funds to the state Budget of Ukraine through state bonds and Bank loans,

mitigation banking regulation in order to boost lending.

• increase the effectiveness of monetary policy,

Also in the Board was encouraged to perform and report to the NBU Council about the possible impact of further rate cuts and the introduction of certain instruments of the NBU on financial stability and balance sheets of commercial banks, and to amend legislation that would allow domestic banks to buy government bonds.

it is Proposed to take measures to enhance lending to small and medium businesses and mortgages, in particular by changing the order of calculation of risks on loans granted under government programs.

the Scandal caused by the resignation Smoliy, forced the IMF and other international partners to review the issue of crediting of Ukraine, which soon will increase speculative pressures on the hryvnia.

the Balance of the single Treasury account as of July 1, reached 75,7 billion, 80% of which were dividends from PrivatBank (24,46 billion) and Naftogaz (UAH 39.6 billion).

Last week, the NBU bought on the interbank market 424,5 million $, which the seller was mostly Naftogaz.

Dollar on the interbank market yesterday rose by 12 kopecks to 26.86/of 26.88 UAH/$ despite the low trading activity, which allowed speculators to rock the course. The national Bank at the auction did not go.

in the Near future to increase foreign exchange income from sales of agricultural products of the new harvest, will reduce the speculative pressure on the hryvnia.