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.