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Economy 2019-03-15T04:29:54+02:00
Ukrainian news
NBU: Hryvnia Devaluation Caused By Repatriation Of Dividends Abroad, Sale Of OVDP By Non-Residents

NBU: Hryvnia Devaluation Caused By Repatriation Of Dividends Abroad, Sale Of OVDP By Non-Residents

The devaluation of the hryvnia is due to repatriation of dividends abroad and sale of government domestic loan bonds (OVDP) by non-residents.

This is stated in comments by the National Bank of Ukraine, the Ukrainian News Agency reports.

"The exchange-rate fluctuations that we are observing for the second week are caused by a number of factors. They include active operations involving transfer of dividends abroad by companies (nearly USD 300 million has been purchased for this purpose since the beginning of July) and sale of OVDP by non-residents (the value of the government bonds in the portfolios of nonresidents has fallen by almost UAH 1.3 billion since the beginning of July)," the National Bank of Ukraine said.

According to the National Bank of Ukraine, last week’s exchange-rate dynamics was also influenced by the significant volumes of VAT refunds at the end of the month, which significantly reduces the amount of free sale of foreign currency, and an increase in demand for foreign-currency cash, particularly from the informal agricultural sector in connection with the beginning of the season.

The National Bank of Ukraine has repeatedly intervened with the purpose of smoothening these currency fluctuations, selling USD 148 million on the market since the beginning of last week.

According to the comments, the National Bank of Ukraine continues to closely monitor the state of the foreign-currency market and, it is ready to further smooth out excessive fluctuations by conducting interventions if necessary.

As Ukrainian News Agency earlier reported, the head of the Council of the National Bank of Ukraine, Bohdan Danylyshyn, has attributed the devaluation of the hryvnia in July to an increase in demand for non-cash foreign currency and the influence of short-term factors.

Больше новостей о: NBU hryvnia devaluation repatriation of dividends OVDP

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