The dollar on the interbank market at the end of the week turned down

Last week the dollar on the interbank market increased due to the possible strengthening of quarantine, the political crisis in Ukraine and the increase in the budget deficit. With the Monday 28,11/28,13 UAH/$ quotes Thursday made up of 28.33/28,35 UAH/$, but on Friday declined to 28.31/28,325 UAH/$.

the national Bank during the week did not participate in the auction, allowing the market to find their own balance. The demand for currency from importers remained low, while supply from exporters is increasing due to active sales of agricultural products. The demand for currency periodically increases when the non-resident must list your assets and dividends, and on expectations of further appreciation of speculators to quickly heat quotes.

the course continues to pressure the budget deficit and the likely failure of the IMF from providing the next tranche of aid until the end of the year. However, the main reason for the sharp jump could be the tightening of quarantine due to an increase in the number of infected Covid-19 in Ukraine, more than 14 thousand cases per day.

the Budget of Ukraine is heavily dependent on the income of the population, since, according to CASE Ukraine, the share of taxes of the population in budget revenues in 2020 from 73%, and in 2021 it will grow to 78%.

In total income budget

the

38% or 647 billion – taxes paid when purchasing goods (27% or 463 billion UAH of VAT, 9% or 153,9 billion – excise tax).

• 40% or 667,9 billion UAH are paid by Ukrainians in the course of employment taxes (including 20.4% of income or 350,7 billion UAH of personal income tax of 16.7%, or 286,6 billion ERUs),

a Tax on profits is only 6.7% of budget revenues and non-tax revenues – 10%.

Therefore, the government and Parliament need to work on reducing the expenditure side of the budget 2021, particularly administrative costs, not to increase the tax burden on businesses.