The hryvnia exchange rate continues to strengthen against the dollar

The strengthening of the hryvnia against the dollar continues, and over the past week the dollar exchange rate on the interbank market fell to 26.19-26.21 UAH/., although on Thursday it won back the fall, and in general over the week it fell to 26.27-26.3 UAH/..

To keep the hryvnia from sharply strengthening, the National Bank was forced to step up the purchase of excess currency, and during October 18-23 purchased 3 350 million on the interbank market (compared to.120 million in the previous week), but did not sell the currency. In October, the National Bank bought almost 7 700 million, and since the beginning of the year it has acquired 2 2.374 billion and sold.197 million. Recall that in 2020, the National Bank purchased 4 4.93 billion on the interbank market and sold.3.89 billion.

The main reason for the strengthening of the hryvnia remains the favorable situation on world markets for the main positions of domestic exports, in particular, the increase in prices for agricultural products. Therefore, an increase in the yield of sunflower, soybeans and corn activates foreign exchange earnings.

Due to the low rate of economic recovery caused by quarantine restrictions, the National Bank lowered its forecast for economic growth in Ukraine from 3.8% to 3.1%, but in the second half of the year there is already an increase in economic activity.

Additionally, the hryvnia exchange rate is supported by the news that Ukraine and the IMF have reached a preliminary agreement on the provision of a tranche of 7 700 million.