National Bank of Ukraine's Currency Transactions in the Last Week of 2023
The National Bank of Ukraine engaged in significant foreign exchange operations in the last week of December, with substantial sales and minimal purchases of currency.
Charlie Kennedy
- 2023-12-30
- Updated 04:52 PM ET
(NewsNibs) - In the period from December 25 to December 29, the National Bank of Ukraine (NBU) sold $892.7 million while purchasing only $870,000. This information was disclosed by the NBU on its website on Saturday, December 30. The disclosed figures reflect the National Bank's efforts to manage the exchange rate of the hryvnia amidst fluctuating market conditions. In what appears to be an active end to the year, the efforts underline the adjustments needed to stabilize the national currency.
Reduced Activity in the Interbank Market
During the final working week of 2023, there was a noted decrease in the volume of currency sales on the interbank foreign exchange market, a drop of $86 million compared to previous weeks. This downturn marks the first reduction in sales volume for the month of December. As of the end of 2023, total transactions for the year showed that the National Bank sold $28.83 billion and bought close to $220 million, indicating substantial engagement in currency markets throughout the year.
Hryvnia Exchange Rate Under Pressure
Parallel to these transactions, on December 29, the National Bank of Ukraine raised the exchange rate of the dollar above 38 hryvnias, setting an unprecedented high. According to the NBU, the weakening of the hryvnia throughout December was primarily due to heightened demand for currency. Sergiy Nikolaychuk, the deputy head of the National Bank, stated that fluctuations in the hryvnia exchange rate are anticipated to continue in both directions. He assured that the NBU is equipped to smooth out these exchange rate fluctuations as part of their market interventions.
The ongoing interventions by the National Bank of Ukraine aim to stabilize the national currency amidst market fluctuations. With the hryvnia experiencing pressures and setting new records against the dollar, the NBU has signified its readiness to continue regulating the currency exchange rate to foster economic steadiness.
