The dependence of the hryvnia exchange rate from the auctions of government bonds has increased
Yesterday, at the interbank market the dollar has risen slightly against the background of increased demand for the currency and the reduction in income from the sale of hryvnia government bonds.
the Ministry of Finance brought in a budget of 1.15 billion, placing at auction bonds for a period of 2 years with an interest rate of 15.36% per annum on the amount of 114,98 million UAH for a period of 1 year and interest rate of 17.25% in the amount of UAH 500 million for a period of 91 days and an interest rate of 15.74% in the amount of UAH 500 million.
Despite the recent statements of the Ministry of Finance to lower interest rates, the cost of raising funds in the year increased to 17.25%. Rising interest rates and a decrease in the volume of funds show the reluctance of non-residents to buy hryvnia bonds in anticipation of rising dollar exchange rate and reduced profitability of transactions in such securities.
From Friday 24,49/24,53 UAH/$ yesterday on the interbank market, the dollar rose to 24.8/24,82 UAH/$, but at the end of trading, slipped to 24.77/24,80 UAH/$. The increase in balances on correspondent accounts of banks by 2.7 billion UAH to UAH 61.9 billion has increased pressure on the hryvnia. Data for liquidity on Tuesday morning strengthened the intentions of sellers of currency to play "on increase", what is their pleasure to help speculators.
Curb sales of foreign currency by exporters amid lack of hryvnia from customers led to a rise in the dollar despite the increase in balances on correspondent accounts. The national Bank did not participate in the auction to auction while the rate on October 16, was announced at the level of 24,785759 UAH/$.
Today, the dollar will continue to rise due to the reduction of proposals and speculative currency transactions.