National Bank names reasons for hryvnia beefup

The National Bank of Ukraine has explained the recent rise of the Ukrainian hryvnia against major currencies. Hryvnia has been growing stronger against the background of cheaper oil and gas imports and favorable conditions for Ukrainian exports in global markets, the central bank's press service reported citing an interview with Head of Projects and Programs of the NBU's Department of Open Markets," Emal Bakhtari. Besides, the report notes this year's record crop and "very good" volumes of foreign currency earnings by metallurgists. In addition, the NBU points at the annual growth of the IT industry and an increase in the number of Ukrainian companies receiving orders from foreign businesses, which leads to higher earnings in foreign currency. Also, the NBU reminded of a new factor that maintains the exchange rate this year – significant volumes of purchases by non-residents of government bonds denominated in hryvnia. "A fixed rate is like candy, the price of which is actually very high. It leads to losses, crises, and creates the illusion of stability. A healthy situation is a floating rate that adequately responds to what is happening in the market," the report says. As UNIAN reported earlier, the Ukrainian hryvnia's official exchange rate against the dollar for September 26 updated a four-year high at UAH 24.12.

National Bank names reasons for hryvnia beefup

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