The national Bank is actively holding the hryvnia from the sharp appreciation

2021-02-08 12:01:31
Machine translation
The national Bank is actively holding the hryvnia from the sharp appreciation

over the last week, the hryvnia on the interbank market strengthened against the dollar with 28,01/28,03 UAH/$ to 27.72/accounting period by 27.74 UAH/$. The increase of currency proceeds from the sale of agricultural products amid rising global prices and sale of foreign currency by non-residents ahead of the auction on placement of government bonds leads to an excess of supply over demand.

 

According to the Ministry, in January 2020, exports of agricultural products from Ukraine increased compared to the corresponding period of the previous year by 14% to 1.98 billion $. The share of agricultural products in total exports of Ukraine is 48%, whereas in the structure of exports of agricultural products, the share of grain crops is 48% and oil – 23%.

 

against the backdrop of increasing foreign exchange earnings, the national Bank was forced to buy the excess, and between 1-5 February purchased on the interbank market of 90 million $, while in January to stabilize the regulator has acquired $ 40 million and sold $20 million.

 

the Auctions of government bonds, as expected, continues to contribute to the strengthening of the hryvnia. So, at auction on 2 February by the sale of government bonds, the Finance Ministry raised the budget of 5.29 billion. At the auction were sold the following paper:

  • a period of 3 months with an average rate of yield of 9.29% in the amount of UAH 250 million,
  • for a period of 1 year, the rate of return which is due to the limited supply has reduced by 33 b.p. to 11.4% in the amount of 898 million,
  • period of 2 years with a rate of return of 11.88% on the amount of 2.14 billion,
  • period of 3 years with a rate of return of 12.15% on the amount of 1.99 billion.

 

In the next auction on 9 February, the Ministry of Finance additionally will offer customers a long 6-year government bonds, and the auction February 16 – 2-year bonds in dollars and 1-year in euros. Appropriate changes specified in the schedule of the bonds issued on the website of the Department.

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