The national Bank explained the reasons for the sharp fall of the dollar in Ukraine

In NBU believe that the members of the Ukrainian currency market has begun to show financial maturity, which has a positive effect on the hryvnia.

Нацбанк пояснив причини різкого падіння курсу долара в Україні

Since the end of January to February, American dollar in Ukraine continued falling against the local currency, already down to 56 cents. On the morning of February 6, the dollar reached a low for the last six months, the last time such oscillations were observed in August 2018, informs Rus.Media.

The national Bank explains the situation, “the maturation of the Ukrainian foreign exchange market”, supposedly, players in the market began to consider the risks for the national currency, and in this regard, speculators and fraudsters have become much harder to influence the General economic situation.

This is stated in the press release of the NBU, published on the Agency’s website.

“Seasonality of exchange rate fluctuations gradually disappear as a phenomenon in Ukraine: the population and business are accustomed to flexible exchange rate and do not panic for moderate fluctuations of the hryvnia,” – said the regulator.

Separately in the National Bank said that the foreign exchange market supply of foreign currency exceeds demand. It eliminates the risk of currency speculation.

The current situation is due to the following factors:

  • stable inflow of export to Ukraine;
  • activization of foreign investors in the Ukrainian market;
  • the growth of investments of foreigners in the Ukrainian government securities (t-bills).

The upcoming elections in Ukraine have no effect on investor sentiment, said the NBU.

“Investors are not being deterred elections, with the beginning of the year investments of nonresidents in government bonds rose by more than 6 billion UAH”, – noted in the NBU.

Earlier, the Chairman of the National Bank of Ukraine Yakov Smoliy said that in December 2018 and January 2019, Ukraine is atypical for recent years, the situation is the seasonal fluctuations have ceased to significantly affect the rate of the national currency and, accordingly, the expected growth of the dollar before the New year did not happen. He noted that in the previous three years, the hryvnia strengthened until the end of autumn, and before the New year falling due transactions of farmers, now entrepreneurs have begun to notice a trend and have stabilized the exchange rate, buying dollars before the New year, in advance, in order not to lose income.