The sale of government bonds worth UAH 20.5 billion led to a sharp strengthening of the hryvnia exchange rate on the interbank market

The hryvnia yesterday received significant support from the auction for the sale of government bonds, thanks to which its exchange rate on the interbank market immediately increased by 10 kopecks to 27.18/27.20 UAH/., which corresponds to the level of last week. Analysts believe that until the end of the year, the hryvnia exchange rate will remain stable at the level of 26.8-27.2 UAH/., and then it will continue to strengthen due to the active sales of domestic government loan bonds (government bonds) by the Ministry of finance at weekly auctions.

In addition to foreign investors who actively buy government bonds, domestic exporters will contribute to the increase in foreign exchange earnings, which will increase sales of agricultural products in the new year, since many farmers postponed the sale of goods to January – March.

At the auction on December 21, the Ministry of Finance sold government bonds in the amount of UAH 20.5 billion, in particular in UAH 12 billion for a period of 3 months to 5 years with a yield rate of 10.5-13.25% per annum, and in dollars in the amount of 3 307.5 million at 3.7% per annum. Compared to the previous auction, the budget managed to attract twice as much money, which confirms the forecasts of an increase in borrowing by the Ministry of Finance in December and January.

Exporters also increased sales of foreign currency in order to make settlements before the end of the year, so the National Bank did not have to go to the auction to buy or sell the currency.

During December 13-17, the National Bank bought викуп 10 million on the interbank market, and sold.132.5 million to contain the growth of the dollar exchange rate, while in the period December 6-10, it bought. 54 million and did not sell foreign currency. This indicates that the hryvnia exchange rate remains under the influence of political factors in the form of possible open military aggression by Russia.

In November – December, the National Bank sold 1 1.025 billion on the interbank market, and acquired.1.2468 billion, maintaining a positive balance. In total, in 2021, the regulator bought викуп 3.676 billion and sold.1.272 billion, while in 2020 it bought. 4.93 billion and sold. 3.89 billion.