NBU raises planned volume of currency purchases in interbank market to $30 mln per day
The National Bank of Ukraine (NBU) has announced its intention in the fourth quarter of 2019 to buy in the interbank foreign exchange market up to $30 million a day to build up international reserves, which is $10 million more than the figure in the second and third quarters of 2019.
"Maintaining a favorable situation in the foreign exchange market for most of this year allows the National Bank to continue replenishing international reserves without affecting the dynamics of the hryvnia exchange rate determined by fundamental economic factors," the central bank said.
The NBU said that the net purchase of foreign currency in the interbank foreign exchange market in January-September 2019 amounted to more than $3.9 billion, while the official hryvnia exchange rate strengthened by 12.5% over this period.
According to the report, the possibilities for expanding currency purchase by the National Bank are due to the emergence of new fundamental factors determining the supply of foreign currency in the interbank foreign exchange market, first of all, a steady inflow of non-residents' funds into the hryvnia state debt.
According to NBU Deputy Governor Oleg Churiy, macro-financial stabilization in the country, the current large-scale liberalization of capital flows, the creation of convenient infrastructure thanks to the link with Clearstream and current trends in the global financial market contributed to the deepening of Ukraine's integration into international capital markets. He believes that non-residents' interest in hryvnia government domestic loan bonds is not speculative: respected institutional investors invest in the Ukrainian public debt, who are attracted not only by high interest rates, but also by a comfortable investment environment.