NBU increases planned volumes of intervention to buy currency on interbank market to $20 mln a day in Q2-Q3 2019
The National Bank of Ukraine (NBU) increased the planned volume of interventions to buy foreign currency on the interbank currency market in the second and third quarters of 2019 to $20 million a day, the NBU has reported on its website.
"In Q2-Q3 2019, the National Bank plans to buy up to $20 million a day to boost forex reserves. This is $5 million more compared with the indicator that was in effect from February 2019," the central bank said.
According to the NBU, the purchase of up to $ 0 million per day will not significantly affect the situation in the interbank market.
"Since the beginning of the year, the volume of trading in the interbank foreign exchange market against the background of currency liberalization and the removal of a number of restrictions for businesses has grown by almost 40%. This allows the National Bank to also increase the volume of currency purchases, without significantly affecting the dynamics of the hryvnia exchange rate, determined by fundamental economic factors," the NBU said.
According to the regulator, the net purchase of currency by the central bank in the interbank foreign exchange market in January-April 2019 amounted to about $900 million. At the same time, the official hryvnia exchange rate has strengthened by 4% since the beginning of the year.
From April 2018, the NBU began to regularly announce the volume of interventions on the purchase of foreign currency to replenish the forex reserves of Ukraine to increase the transparency of the monetary policy in terms of interventions in the foreign exchange market. The planned volume of interventions is purely indicative. Depending on the situation on the market, the National Bank may reduce the volume of purchased currency or refuse to buy it at all.