The National Bank stopped further strengthening of the hryvnia exchange rate against the dollar

Yesterday, the strengthening of the hryvnia exchange rate against the dollar accelerated in the interbank foreign exchange market, but it was stopped by the National Bank, which for the first time in the last two months went to auction to buy back the surplus.

Against the background of significant currency offers, the dollar exchange rate fell yesterday from 27.42/27.44 UAH/. to 27.315/27.335 UAH/..

Supply exceeded demand, and a large number of sellers put pressure on quotes. In order to prevent the dollar from sinking below UAH 27.30/., the National Bank bought almost. 20 million at the rate of UAH 27.32/., which stabilized it at the same level.

Additional pressure on the currency exchange rate is exerted by an increase in offers from the population. According to the NBU, in May, Ukrainians purchased the equivalent of готів 1.732 billion in cash and non-cash currency, and sales of.2.075 billion. Therefore, the net sale of foreign currency by the population in May amounted to 3 342 million, compared with.546 million in April and. 329.7 million in March.

The strengthening of the hryvnia exchange rate will negatively affect the prices of export goods, including agricultural ones. An increase in forecasts for the production of cereals and oilseeds in the world and in Ukraine is already lowering prices for the new crop, so a fall in the currency exchange rate will reduce the volume of its revenues from producers.

According to Prime Minister of Ukraine Denys Shmyhal, the government expects that the hryvnia exchange rate against the dollar in 2022-2023 will remain in the range of 28-29 UAH/., and inflation will decrease to 6.2% in 2022 and 5% in 2023.