The National Bank of Ukraine (NBU) has explained an excessive demand for foreign currency in the interbank market with the coincidence of two temporary factors: Christmas holidays in the United States and Europe, limiting forex supply in the market, and an increased demand for currency against the background of getting VAT refunds by exporter companies.

The NBU said this, with reference to the director of the department of public markets, Serhiy Ponomarenko.

"The banks are required to perform an obligatory sale of foreign currency next day after the receipt of currency. Accordingly, when a working day in Ukraine on December 26 coincided with a day off in the United States and Europe (Christmas), foreign currency earnings did not come to the accounts of Ukrainian banks, which limited mandatory forex sales on December 27. On the other hand, the foreign exchange market is pressed by the demand for currency from exporting companies that have received VAT refunds from the budget last and this week," he explained.

At the same time, the central bank said it has enough reserves to smooth excessive fluctuations: the volume of international reserves currently stands at about $15.7 billion.