The head of the NBU Council explained the strengthening of the hryvnia

Глава Совета НБУ объяснил укрепление гривны

According to him, the strengthening of the hryvnia will last a maximum in may-June.

The main reasons for the strengthening of the hryvnia and the fall in foreign exchange rates is the Federal reserve not to raise the key rate and the fall in world energy prices.

This was written by the head of the Council of the National Bank Bogdan Danilishin on his page in Facebook, reports the online edition of the Chronicle.info with reference to PKG.

According to him, the strengthening of the hryvnia will last a maximum in may-June.

“The impact on the realities and perspectives of all currencies in the world, including the hryvnia, makes the fed’s policy – it is an axiom. That the leadership of the fed has doubts as to whether to continue the tight monetary policy became known in the early days of the year,” said Danylyshyn.

According to the head of the NBU Council, the “pause” in raising rates, the fed will last until about June, which will create favorable conditions for the Ukrainian currency.

In addition, the hryvnia exchange rate was affected by the fall in world energy prices, which constitute a significant part of Ukrainian imports.

“It seems we have entered a period of relatively low oil prices and other energy resources, among which are important for Ukraine, along with the “black gold”, is natural gas. Reducing the cost of energy associated with excess supply in the global market”, – noted he.

In addition, the strengthening of the hryvnia was driven by several internal factors: growth of exports of agricultural products and metallurgy, the growth of receipts from the sale of the Ukrainian debt securities and reasonable costs of the state budget in early 2019.

“Active exports of Ukrainian agricultural products will be in March-April, may-it will be a temporary (few months) decline. And investments of nonresidents in government bonds – not long: in the summer of foreign investors, waiting for the redemption of debt securities likely to withdraw from the Ukrainian market, thereby increasing demand for foreign currency”, – wrote he.

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