The volume of Ukraine`s international reserves to date is about $15.7 billion, and this amount is sufficient for National Bank to carry out interventions in order to smooth down currency fluctuations and fulfill the government`s obligations, according to the regulator`s comments on the situation in the currency market.
”The National Bank has sufficient tools to smooth down excessive fluctuations. The volume of international reserves now stands at about $15.7 billion. This is enough to sell foreign currency in the course of interventions and to fulfill obligations of the government and the NBU,” the comment reads.
In particular, the NBU said that today, December 27, 2016, a temporary excess demand for foreign currency is observed on the interbank foreign exchange market, which was formed under the influence of situational factors.
NBU noted that, on the one hand, the exchange offer today is limited due to the Christmas holidays in the U.S. and Europe.
”Authorized banks are obliged to carry out mandatory sales of foreign currency earnings the next day after receipt of the [foreign] currency. Accordingly, when the working day in Ukraine on December 26 coincided with the day off in the U.S. and Europe, foreign currency earnings did not flow to the accounts of Ukrainian banks, which limited the mandatory sale of foreign currency earnings December 27,” reads the statement.
Additional pressure on the foreign exchange market is put by the demand for the foreign currency by exporting companies that received VAT compensation past week and this week as well.
The regulator notes that in cases such as today, when the currency market is dominated by temporary factors, the National Bank has sufficient tools to smooth down excessive fluctuations.
As UNIAN reported earlier, the National Bank of Ukraine today, on December 27, held an auction for the sale of foreign currency for the hryvnia with an increased volume of up to $80 million.
Hryvnia quotes to the dollar on the interbank market at 11:30 settled at UAH 26.50/26.65 to the dollar.
The average exchange rate on the interbank market, according to the NBU, by this time established at the level of UAH 26.6344 to the dollar.