Weakening of hryvnia in Sept due to growing demand for forex on part of energy traders
The depreciation of the hryvnia to U.S. dollar exchange rate in September is mainly due to the seasonal demand for foreign currency on the part of energy traders, according to the macroeconomic and monetary survey by the National Bank of Ukraine (NBU) for September.
"Devaluation pressure on the hryvnia in September was mainly seasonal, due to the traditional growth in demand for foreign currency on the part of oil and gas traders, which was further strengthened by a moderate increase in oil prices in the world market," the document says.
In addition, the National Bank noted a reduction in the supply of cash foreign currency from the public with a simultaneous increase in demand for it.
According to the central bank's estimates, the increase in public demand is largely due to seasonal deterioration in exchange rate expectations.
As reported, the hryvnia to U.S. dollar exchange rate since April 5, 2017 has been in a downward trend, which, except for short breaks, lasted until August 29. For the specified period of time, the national currency has risen in price to the U.S. dollar by 6.4%, to UAH 25.4525 per $1.
On the last trading day of August the hryvnia exchange rate began to gradually weaken and by September 29 sank by 4.6%, to UAH 26.615/$1.