the-nbu-analyzes-possible-delays-in-international-financing-what-impact-it-may-have

The NBU analyzes possible delays in international financing: what impact it may have

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The delay in resolving the issue of international financing may cause additional demand for the currency, but the resumption of external financing is expected in the near future. These are the results of the discussion of the Monetary Policy Committee of the National Bank on the level of the discount rate on December 13, the NBU published, UNN writes.

Details

The FX market reportedly  successfully adapted to the managed exchange rate flexibility regime introduced in early October. The NBU covered the structural deficit of foreign currency on the interbank foreign exchange market on a daily basis and ensured moderate exchange rate fluctuations in both directions, taking into account changes in the balance of supply and demand for foreign currency. "As a result, the excitement around the introduction of the new exchange rate regime quickly dried up, the hryvnia exchange rate even strengthened in November, and the NBU's interventions gradually decreased," the report says.

НБУ вперше з липня минулого року підняв офіційний курс03.10.23, 15:18 • [views_1220805]

Thus, in November, the balance of NBU interventions amounted to USD 2.5 billion . This is a 1.4-fold decrease compared to October and a 10% decrease compared to September.  

Delays in resolving the issue of international financing may negatively affect expectations and thus lead to additional demand for the currency

- said the NBU's Monetary Policy Committee.

It is noted that "external financing is expected to resume in the near future".

Currently, Ukraine's international reserves amount to almost $39 billion . They are sufficient to maintain control over the exchange rate dynamics, the regulator noted.

Julia Shramko

Economy

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