Political instability swings hryvnia exchange rate – NBU governor

14:09, 05.02.2016 1 min read

The hryvnia exchange rate has decreased due to political instability along with the seasonal factors, the fall in business activity in November and the settling of a large payment from the treasury account, Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva has said.

"In recent days, unfortunately, another situation factor was added – political instability, which creates vagueness about the future of the country and could be a ground for large demand on currency," she said in the parliament on Friday.

She said that the sooner the situation improves in the political sphere, the less the hryvnia exchange rate will swing.

Gontareva said that hot news from the political area always affect the pace of financial markets and the current situation is no exception.

"For example, investors in Ukrainian sovereign eurbonds started selling state debt fearing that the short-term solvency of our country would worsen. This resulted in the shift of the Ukrainian bond yield curve," she said.