NBU explains hryvnia volatility with foreign policy situation

15:27, 12.08.2016 1 min read

The growth of volatility in the hryvnia exchange rate over the past days has situational nature on the background of the foreign policy situation, according to the press service of the National Bank of Ukraine (NBU).

"Over the last few days a rise in volatility of the hryvnia exchange rate has been observed in the currency market. These fluctuations are situational in nature [against the background of the foreign policy situation] and are not related to fundamental factors," the central bank said.

The NBU noted the situation in external and internal markets remains favorable due to the rapid fall in inflation rates, high yields of grain and a positive situation in the world steel and iron ore markets.

In addition, according to the NBU, the decline in oil prices and improvement in energy efficiency led to reduction in imports.

The NBU said forex supply exceeded the demand in the interbank forex market from the second half of March till July.