The NBU explains why the hryvnia began to devalue sharply
Kyiv • UNN
The economic recovery and increased imports are putting additional pressure on the hryvnia exchange rate due to the growing demand for foreign currency. The NBU has the resources to cover the foreign currency shortage and curb excessive exchange rate fluctuations.
Growth in net demand for foreign currency in Ukraine, driven by economic recovery and increased imports, is putting additional pressure on the hryvnia exchange rate.
This is stated in the NBU's report on financial stability, UNN reports.
The NBU explains that demand for foreign currency is gradually increasing due to the economic recovery and increased imports. The liberalization of some capital controls has had little impact on the market so far, as companies have been making more than a third of their payments abroad using their own foreign currency reserves.
At the same time, households' demand for cash foreign currency increased in the fall. Growth in demand is the main factor behind the additional pressure on the exchange rate
The National Bank of Ukraine notes that it has the resources to cover the currency deficit and curb excessive exchange rate fluctuations, the document says.
Recall
The National Bank of Ukraine set the official hryvnia exchange rate at 41.8761 UAH/USDtoday, devaluing the hryvnia by 5 kopecks.