2016-12-27T12:36:00+02:00 World 2023-01-15T08:56:52+02:00

Ukrainian news

Ukrainian news

NBU Explains Higher Demand For Foreign Currency On Interbank Market With Christmas Holidays In Europe, USA

NBU Explains Higher Demand For Foreign Currency On Interbank Market With Christmas Holidays In Europe, USA

The National Bank of Ukraine (NBU) explains the increased demand for foreign currency on the interbank market with Christmas holidays in Europe and the United States.

Ukrainian News Agency learned this from a statement made by the NBU press service.

“Today, December 27, a surge of demand for foreign currency on the interbank FX market owing to situational factors. On the one hand, the currency supply is restricted today in connection with the Christmas holidays in Europe and USA. Much of the currency earnings, mainly from the export of goods in services, comes to Ukraine in US dollars and euros, so in most cases it follows through the Ukrainian banks’ correspondent accounts in USA and Europe,” it reads.

The FX market also experiences influence of the demand for foreign currency from the exporter companies that received VAT refunds from the budget for the last week and this one.

For the prevention of excess fluctuations of the hryvnia’s exchange rate, the NBU on Tuesday announced an auction to sell foreign currency with an amount of up to USD 80 million.

As Ukrainian News Agency earlier reported, the central bank explained the drop in the hryvnia’s rate on the interbank market with the political tension in the country.