The National Bank of Ukraine (NBU) since the beginning of the year has increased international reserves by $1.2 billion due to the purchase of foreign currency in the interbank foreign exchange market, head of the central bank Yakiv Smolii has said.

"In view of the excess of currency supply over demand, the National Bank took the opportunity to increase international reserves necessary to ensure macro financial stability without creating pressure on the movement of the exchange rate. In general, the net purchase of currency in the interbank foreign exchange market since the beginning of the year exceeded $1.2 billion," he said at a briefing in Kyiv.

According to the NBU head, the growth of the currency supply in the interbank market was supported by the monetary policy of the central bank, high prices for the goods of Ukrainian exports - metal, ore and grain, as well as activation of banks after the recent decision of the regulator to expand their ability to conduct own operations with foreign currency.

"These factors ensured the strengthening of the hryvnia both to the U.S. dollar and to the currencies of the partner countries of Ukraine," he said.

As reported, the NBU in late April announced its intention in the second quarter of 2018 to buy up to $10 million per day in the interbank foreign exchange market to build up international reserves. At the same time, the volume of purchases during one day may exceed the announced volume, however such interventions will be carried out to fulfill other tasks stipulated by the NBU's Strategy of Foreign Exchange Interventions for 2016-2020, in particular to smooth the functioning of the foreign exchange market.