Strengthening of the hryvnia. What is the reason?

The strengthening of the hryvnia on the currency market due to the excess supply of foreign currency. On Monday, August 20, writes 112 Ukraine with reference to head of the Department of public markets, the NBU Serhiy Ponomarenko.

According to him, the foreign exchange market, the principle of floating exchange rate.

“That is, it is not fixed, it is constantly changing under the influence of supply and demand. It is obvious that in the last days, is the strengthening began on Friday and continued today – foreign currency supply on the market prevailed. I think it could be connected in some way with the fact that Friday was the last day of tax payments and exporters, sellers currency in order to fulfil their obligations before the budget, sold a significant amount and it has influenced not only the supply of currency on the market, but also had a psychological aspect,” he explained.

Ponomarenko said that on Monday, August 20, the NBU was forced to take part in the auction in the interbank currency market in order to stabilize the situation.

“Today we were forced to rescue the market, because there are so many people willing to sell and we had to go with the purchase of currency to all the sellers were able to sell the currency. Today we bought $ 17 million. from the reserves, the average rate of 27.65 approximately UAH, and closed the interbank market”, – he said.

As stressed by the representative of the national Bank, later the national currency will have to go through a number of fluctuations in the value.

“We are monitoring the situation and trying to avoid major fluctuations,” – said Ponomarev.

We will remind, in July, the hryvnia depreciated by 2.2%, down 65 cents.

In National Bank say that reducing the exchange rate of the Ukrainian national currency has no fundamental reasons.

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