Foreign exchange market

09 Aug 2009

In June 2009, the official UAH/USD exchange rate went down by UAH 1.15 or by 0.2%, equaling UAH 763.03 per USD 100 as at 30 June 2009. It could be explained by the termination of import contracts at end-June. The dynamics of the UAH/EUR exchange rate corresponded to the USD/EUR exchange rate dynamics on the international markets. The UAH/EUR official exchange rate reduced by 1.9% during the month and grew by 0.9% versus the year start to UAH 1,075.57 per EUR 100 as of 30 June 2009.

In June 2009, there were NBU interventions on both foreign currency purchase and sale. Besides, there were held special-purpose auctions on foreign currency sales in order to satisfy needs of bank customers residents – natural persons and entrepreneurs for their repayment of debts on foreign currency loans. At the auctions, there were sold US dollars and Swiss francs.

In June 2009, the international reserves reduced by 1.6%, amounting to USD 27.3 billion as of 1 July 2009 (in the dollar equivalent). It was impacted by the negative balance of NBU interventions (USD 0.7 billion) and timely repayment and servicing of the external public debt.

 

Dynamics of the official exchange rate of hryvnia, US dollar, and euro in 2008 and 2009 (daily)

Foreign currency purchase and sale on the foreign exchange cash market of Ukraine from June 2008

In June 2009, seen was an increase in demand for foreign currency on both segments of the foreign exchange market, which caused the reduction of the UAH/USD exchange rate. Thus, on 30 June 2009, on the interbank foreign exchange market, the UAH/USD exchange rate on ale equaled UAH 772.22 per USD 100, having depreciated by 1.0% during the accounting month. On the cash foreign exchange market of Ukraine, there was observed an excess of foreign currencies sale by banks to individuals over their purchase (the net demand was 6.7 times as much as net supply), chiefly at the expense of US dollar. By end-June, the UAH/USD cash exchange rate on sale by banks reduced by 0.9% to UAH 773.35 per USD 100.

 

Source: Bulletin of the National Bank of Ukraine

 

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