The currency exchange market’s tendency is towards improvement

The National Bank of Ukraine purchased $215 million in the forex market. This has been reported by Deputy Director of the General Department for Money & Credit Policy of the NBU Olexander Arsenyuk, the press-service of the NBU reports.

In his opinion, the situation in the currency market has had so far a tendency towards improvement.  In particular, net currency demand reported throughout the 1-st quarter of 2014 changed to net money supply in cashless ($0,2 billion) and cash ($0,3 billion) segments of the currency market in April-May.

«The National Bank of Ukraine sees its task as smoothing over sharp fluctuations in hryvnia exchange rate, apart from the necessity to undertake measures in order to replenish the foreign currency reserves of the country. Thus, the decision of May 30 on coming to the interbank currency market to buy foreign currencies was passed», – he noted.

Olexander Arsenyuk believes that this tendency is evident of step-by-step upgrading of expectations of the currency market players. Partly, this is due to the fact that Ukraine has started to embed a large-scale stabilization program that is being funded by the government from the IMF’s loan and funds lent by other investors, both in the domestic and overseas markets.

Additionally, he underscored, this is spurring up the demand of businesses for the local monetary unit, and with the view of coping with it, they are, among all other things, selling their foreign stock acquired in times of uncertainty. In particular, these tendencies become more evident when it comes to paying taxes and other mandatory payments to the government budget, what, in particular, has happened in the last days of May.