The decline in demand for government bonds has led to the appreciation of the dollar

Yesterday the Ministry of Finance held a regular auction of government bonds with a consequent reduction in the cost of loans.

Overall, the auction were sold securities amounting to 1,317 billion:

the

1-year-old under of 13.46% to 526 million UAH,

2-year at 13.5% to 664 million.

• 3-month under of 13.95% per annum on the amount of 127 million UAH,

Another reduction in profitability led to a decrease in demand for government bonds, the result of which was realized only a portion of the offered securities in the amount of 2.8 billion UAH. This has led speculators to destabilize the currency.

First, the currency soared amid the deterrence of sales, but later the big sellers for the financing of business operations and budget payments has significantly increased supply on the interbank market to support hryvnia exchange rate.

As a result, the exchange rate, after rising from 24.16 to 24.21 UAH/$ at the end of the session declined to 24.14/24,17 UAH/$.

the national Bank through the Matching system bought the surplus currency in the amount of 30-50 million $, which stabilized the quotations. Within weeks, the speculators will try again to boost the exchange rate, as the fundamental factors are not working in favor of the hryvnia, and the expectation of high rate contributes to speculative growth.