Quarantine contributes to the strengthening of the hryvnia

2020-03-23 12:13:31
Machine translation
Quarantine contributes to the strengthening of the hryvnia

on Friday, the hryvnia on the interbank market for the first time over the past few weeks has strengthened since the morning of 28 UAH/$ to 27.5 UAH/$ before closing.


on the Morning of 20 March, the NBU sold $ 150 million at the exchange rate 27,99 UAH/$, and by the evening, when the trend is reversed on the contrary, bought $ 50 million at the exchange rate 27,35 UAH/$. To curb the course during the last week, the NBU sold 1,038 billion $.


the Introduction of quarantine in the country and reduce import volumes have led to a sharp drop in demand for foreign currency, which was formed mainly by speculative demand due to uncertainty with the impact of the epidemic coronavirus on the country's economy.


the Shortage of currency in banks arising from the cancellation of part of the flights, led to a panic demand on the physical market, where the dollar rose to 28-29 UAH/$, and then on the interbank market.


But on Friday at the auction where the Bank offered in cash 200 million euros, the demand for foreign currency amounted to 6.2 million euros from two banks.


the national Bank said that in the last days the population was less to buy foreign currency, as cash and online. And the reduction in incomes due to quarantine smit them to sell the currency reserves that will lead to growth of offers of cash dollar or Euro.


On the interbank market the demand for foreign currency will decrease due to a decrease in activity, whereas a decrease in foreign currency revenues from exports of agricultural products are not yet expected.


the national Bank appealed to the Cabinet a proposal to allow all non-banking financial institutions (exchange offices, pawnshops, credit unions, financial companies) provide services during the quarantine.


at the same time a letter from 22.03.2020 the national Bank determined the operation of banks in the period of enhanced measures to prevent the spread of coronavirus. Banks should ensure that critical to the operation of the Central offices features: smooth operation of remote service channels and contact centers.


Banks are permitted to change the mode of outlets, the number of operations that are carried out in departments according to the situation and load, to set a different time for service of the elderly and other clients, providing stable work of branches in the "sleeping areas".


Banks are obliged to determine the list of support offices that will work during the quarantine, and close other clinical departments while ensuring continuity of customer service. And to ensure stable availability of cash in ATMs, the collection of revenues of retail chains and the acceptance and processing of all card issuers in the networks of ATMs and POS-terminals.


in addition, the NBU has suggested all government payments translate into a cashless form, which will further increase the shortage of cash hryvnia from the population and to reduce pressure on the exchange rate.

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