The National Bank increased the repurchase of currency from the market by more than 100% per week

  • The National Bank increased the repurchase of currency from the market by more than 100 per week

Kiev: On November 4-8, 2019, the National Bank of Ukraine bought back $ 372 million from the foreign exchange market, which is more than 2 times the volume of currency repurchase in the previous week.

Such data are contained on the NBU website.

During the specified working week, the National Bank did not sell foreign currency from reserves, therefore, through the purchase of foreign currency on the interbank market, Ukraine’s international gold and foreign exchange reserves were replenished by $ 372 million.

Note that in early November, the National Bank of Ukraine resumed active redemption of currency from the interbank market, which indicates an excess of its supply. In October 2019, the volumes of currency buybacks were insignificant: in total, the NBU bought about $ 450 million for this month, despite the fact that it sold $ 231 million from reserves.

Since the beginning of 2019, the NBU has redeemed $ 4.98 billion from the market, and sold $ 479.23 million from reserves back to the market. Net replenishment of gold and foreign exchange reserves due to the National Bank entering the interbank market amounted to $ 4.5 billion.

Recall that on October 28 - November 1, 2019, the National Bank purchased $ 156.9 million from the market. Last week, the NBU bought $ 90 million from the market.

At the same time, in the first week of October 2019, the National Bank spent $ 157.5 million from reserves to curb the dollar. Then in Ukraine there was a sharp devaluation of the hryvnia. The rate fell by more than 3% in 2 days, due to which the NBU for the first time since July had to sell currency from reserves.

The National Bank explained the weakening of the hryvnia as a “psychological factor”. Also, the NBU said that currency fluctuations are a natural process.

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