Economy 2021-11-15T07:50:39+02:00
Ukrainian news
NBU To Continue Currency Auctions For Smoothening Hryvnia Fluctuations

NBU To Continue Currency Auctions For Smoothening Hryvnia Fluctuations

National Bank, NBU, central bank, Hontareva, currency auctions, hryvnia, exchange rate

The National Bank of Ukraine (NBU) is determined to continue holding currency auctions for smoothening fluctuations of the hryvnia’s exchange rate.

NBU Governor Valeriya Hontareva announced this in a video address to the Ukrainian Financial Forum participants, Ukrainian News Agency reports.

In spite of the stereotype of traditional devaluation of the hryvnia in autumn, she said, this year there is a number of positive factors that will not be affecting the hryvnia’s rate.

“As a rule, Naftogaz of Ukraine NJSC buys currency for its natural gas purchases. This year, Naftogaz bought currency beforehand so it will not create any extra demand for currency,” the Governor explained.

Meanwhile, another factor to work upon the exchange rate formation this autumn is the businesses’ decision to repatriate dividends.

Figures from the NBU, in July and August businesses bought USD 234 million for these purposes, though the NBU’s schedule allows evenly spreading in time the process of dividend payout.

Since the start of the summer the regulator has sold USD 200 million, and will go on bridling volatility of the hryvnia.

Inflation targeting remains above all for the NBU, this year it is projected at 12%.

As Ukrainian News Agency earlier reported, the NBU sold USD 178.1 million and bought UAH 55.8 million at the currency auctions in September.