The powerful national Bank intervention stabilized the exchange rate of the hryvnia

Last week the national Bank had to spend almost 350 $ million to stabilize on a psychological level 28 UAH/$ exchange rate of the dollar, which started to grow last week when the regulator did not make any intervention.

during the 20-24 July, the NBU sold on the interbank market 347,8 million dollars to stop the appreciation of the currency caused by speculative factors and individual statements of politicians about necessity of devaluation of the hryvnia to stimulate economic development.

Deputy Chairman of D. Sologub NBU said that the devaluation of the hryvnia, which is observed in recent weeks, due solely to psychological factors.

on Friday amid the excess of demand over supply of the dollar increased from morning to 27.75/27,78 UAH/$ to 27.84/27 and 87 before the close of trading as the regulator for auction don't come out. Exporters keep selling the currency in anticipation of future growth rate, however, the regulator in the future, likely to keep it.

the Experts, the NBU has lowered the forecast fall Ukraine's GDP in 2020 from 5% to 6%, although we expect that in the coming years will resume its growth to 4%. The main drop in GDP occurred in the 2nd quarter, and already from the second half began the restoration of the economy, which contributes to the easing of quarantine restrictions, as evidenced by the reduction of the budget deficit in recent months. It is planned that in 2021 and 2022 growth will contribute to monetary and fiscal stimuli, strengthening external demand and private consumption.

According to the Treasury, in January-June 2020 the deficit of the state budget of Ukraine totaled UAH 18.8 billion, including General Fund – of 28.38 billion under the plan, of 42 billion UAH. In the period of January-April 2020 the budget deficit was $ 23.5 billion UAH, including the General Fund – UAH 33 billion.

budget Revenues in the period January-June 2020 amounted to 519,39 billion UAH, including the General Fund – 450,9 billion UAH of planned 489,33 billion, and expenses amounted to 536,9 billion UAH, in particular on the General Fund – 480,07 billion UAH of planned 530,75 billion.

Loan in January-June amounted to 263 billion UAH, in particular on the General Fund – 259,4 billion, including foreign loans -109,33 billion, of which the General Fund – UAH 105.8 billion. It was extinguished 156,16 billion.