National Bank Of Ukraine Will Intervene This Week To Strenghten, Stabilize Hryvnia

KIEV, Ukraine -- The National Bank of Ukraine has unveiled its intentions to intervene Dec. 8 through Dec. 12 so as to revaluate the hryvnia.Anatolii Shapovalov, the NBU first deputy governor, also expressed hope the national currency has bottomed out in value.

Ukraine's hryvnia

"We will hold interventions next week in addition. As soon as people understand that the exchange rate [of foreign currencies] goes down and start to sell the dollars, everything will become calm," Shapovalov said.

Shapovalov did not disclose how many interventions there will be next week and on which days the National Bank will intervene.

He noted that the devaluation of the hryvnia stopped in early December and a trend for the revaluation of the national currency emerged then.

"The exchange rate trend has swung round. Possibly, this is the bottom we wanted to reach. As soon as people stop [purchasing foreign currency], there will be a result. There are no economic preconditions for the current exchange rate," the NBU first deputy governor said.

According to Shapovalov, the difference between the value of foreign currency bought by the Ukrainian population and the value of foreign currency sold by the population was USD 2.7 billion in January through September. This index grew to USD 6 billion in October and November.

As Ukrainian News earlier reported, the National Bank of Ukraine has said Ukrainian population sold more foreign currency than bought as registered on December 3 for the first time over the past few weeks.

The balance of the value of foreign currency sold by the population over the value of foreign currency bought by the population on December 3 was equivalent of USD 15.6 million.

The balance of the value of the cash dollars sold by the population over purchased cash dollars was USD 13.5 million on December 3. The trend has been registered for the first time over the past two months.

The cash sell rate for US dollars in Kyiv forex outlets fell by 1.2 kopeck to 7.5600 UAH/USD on December 5, as of 10:30, compared with data as of 9:30.

The National Bank of Ukraine has set its official exchange rate of UAH7.3614/USD1 for December 5 through December 7 and of UAH7.3598/USD1 for December 8.

Source: Kyiv Post

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