Ukraine central bank fights foreign currency outflow with extra measures

Ukraine central bank fights foreign currency outflow with extra measures



23 вересня 2014 года
Конкорд Капитал

National Bank of Ukraine Head Valeriia Gontareva told the dn.ua news site that the NBU will take administrative measures to combat fraudulent schemes of foreign currency outflow that is causing the hryvnia’s current volatility. “We are discussing with the IMF additional administrative measures that we plan to introduce at the market,” she said in an interview published on Sept. 19. Legitimate demand for foreign cash will be covered by the NBU through auctions, she said.

 

Alexander Paraschiy: The administrative measures introduced in August created two types of problems. Firstly, exporters preferred to delay transferring their revenue to Ukraine since 100% of revenues were automatically sold at the ForEx. Secondly, in light of the dominating uncertainty, importers and many other players purchased foreign cash just to lock in a better exchange rate before the hryvnia weakened further.

 

As a result, the exchange rate of Ukrainian hryvnia vs. the U.S. dollar and euro experienced serious volatility amid the administrative measures and no visible worsening in macroeconomic performance. We can’t assess the effectiveness of measures to deal with the speculation since the details have not been revealed. However, without stabilizing the geopolitical situation, smoothening the hryvnia’s volatility will be a very ambitious task.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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