NBU: Businesses Expect Hryvnia Devaluation To 29.16 UAH/USD Within 12 Months

The National Bank of Ukraine says businesses expect the hryvnia devaluation in 12 months to UAH 29.16 UAH/USD.

This is indicated in a survey conducted by the National Bank of Ukraine among top managers of enterprises in the fourth quarter of 2016, Ukrainian News Agency reports.

The Ukrainian businesses expected the hryvnia devaluation in 12 months to UAH 28.03 on average in the third quarter of 2016.

The 12-month inflation expectation of businesses grew in the fourth quarter of 2016 to 16.2% from 13.8% in the third quarter of 2016.

The higher 12-month inflation expectation of businesses accounted for the hryvnia volatility and announced increase in the minimal wage and expected growth in incomes of the population that can boost the consumer demand.

As Ukrainian News Agency earlier reported, the 2017 state budget is based on the average exchange rate of 27.7 UAH/USD