In the last month of winter, the supply of foreign currency was fueled by a seasonal increase in its sales, mainly by agribusiness enterprises to prepare for the sowing campaign.
In February 2023, the situation on the Ukrainian foreign exchange market improved as the National Bank stopped financing the state budget deficit by issuing the hryvnia. This is stated in the macroeconomic and monetary review of the NBU.
Thus, in the last month of winter, the supply of foreign currency was fueled by a seasonal increase in its sales, mainly by agricultural enterprises to prepare for the sowing campaign.
In the last month of winter, the supply of foreign currency was fueled by a seasonal increase in its sales, mainly by agricultural enterprises.
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Photo: NBU
Also, the supply was supported by the saturation of the market with foreign currency in cash, for example, by reducing demand due to the possibility of buying non-cash foreign currency with subsequent placement on a deposit.
“In addition, the lack of monetization of the budget deficit continued to positively affect the foreign exchange market,” the National Bank stressed.
How the energy terror of the Russian Federation affected the foreign exchange market in Ukraine
On February 16, 2023, the head of the National Bank of Ukraine, Andrey Pyshny, in his column for the Ekonomicheskaya Pravda newspaper, said that the foreign exchange market reacted to the actions of the Russian occupiers only once – in October 2022. That is, when the first massive rocket attack on the energy infrastructure of Ukraine happened.
“Further on, the market has learned to put rocket attacks out of the picture – such is the faith of Ukrainians both in themselves and in those who literally hold the sky above us,” Pyshny said.
Earlier, Focus wrote that since the beginning of 2022, the NBU has financed the state budget deficit by UAH 355 billion by issuing hryvnia.
We also recall that at the end of January 2023, the National Bank decided to increase the requirements for mandatory reserves of banks. According to experts of the National Bank, these measures will help reduce the liquidity surplus in the banking system.
