Finance ministry explains seasonal hryvnia exchange rate fluctuations, waiting for stabilization in late 2015

14:18, 27.11.2015 1 min read

The recent hryvnia exchange rate fluctuations on the currency are normal for this season, but are also due to extra hryvnia liquidity, however it is likely that they will stop by the New Year holidays, Deputy Finance Minister of Ukraine Ihor Umansky has said.

"In this period of the year usually some exchange rate fluctuations and hryvnia weakening is seen. In the conditions of the pressure of extra hryvnia liquidity on the market, which passed through payments by the Individuals' Deposit Guarantee Fund to bank depositors, and the seasonal factor on the other hand, we have this trend now. Before New Year and Christmas holidays we usually see the opposite trend – strengthening of the national currency," he said in the parliament on Friday.

Umansky expressed confidence that the hryvnia fluctuations are temporary.

As reported, the hryvnia exchange rate fell by around 10% in the past several weeks, and the National Bank of Ukraine (NBU) had to hold auctions to sell U.S. dollars to prevent the further devaluation of the hryvnia.