The National Bank of Ukraine (NBU) has significantly reduced its interventions in the interbank currency market, coinciding with the depreciation of the hryvnia at the end of last week. According to data published on the financial regulator’s website, last week the NBU sold $314.4 million in the interbank market, which is $221.77 million less than the previous week — a decrease of 41.4%.
This is reported by Finway
Moreover, for the first time since the beginning of March, the National Bank purchased $10 million in the market, increasing the total volume of currency purchases by the NBU since the beginning of the year to $33.5 million, compared to $10.24 billion in sales. Thus, the NBU’s net currency interventions for the past week decreased to $304.4 million, representing a reduction of 43.2%.
Changes in the Cash Currency Market
According to recently released data, there are significant changes in the cash currency market — currency sales have exceeded purchases. This situation has not occurred since the beginning of the year. The net balance of currency sales on different days was as follows:
- Monday (14.04) – $19.7 million;
- Tuesday (15.04) – $8.3 million;
- Wednesday (16.04) – $1.2 million;
- Thursday (17.04) – $3.0 million.
The official exchange rate of the hryvnia also demonstrated volatility throughout the past week. Initially, it strengthened from 41.3879 UAH/$ on Monday to 41.1753 UAH/$ on Wednesday, but by the end of the week, it weakened again to 41.3955 UAH/$. In the cash market, the hryvnia also depreciated on average by 10-15 kopecks. Over the week, its margin noticeably widened:
- Purchase – up to 40.95 UAH/$;
- Sale – up to 41.10 UAH/$.
Economic Forecasts
According to economic expert Serhiy Fursa, Ukrainians should be cautious with investments in dollars, considering the policies of U.S. President Donald Trump. According to the economist, the undermined trust in the American currency and the unpredictability of the actions of the U.S. administration make the dollar an unreliable asset.
“The dollar is currently not considered a reliable asset” – Serhiy Fursa.