NBU replenishes reserves on interbank market by $1 bln since year-start

The National Bank of Ukraine since the beginning of the year has replenished international reserves through foreign currency purchases in the interbank forex market totaling $1 billion, according to NBU Deputy Head Dmytro Solohub.

"Since the beginning of the year, the net purchase of foreign currency by the National Bank in the interbank foreign exchange market has exceeded $1 billion," Solohub told a Kyiv briefing Thursday.

He noted that the excess of foreign currency supply in the market over demand allowed the regulator to replenish international reserves without hindering hryvnia strengthening.

According to him, previous increases in the NBU key rate enhanced the attractiveness of hryvnia financial instruments, which contributed to the inflow of foreign capital.

Read alsoRussian ruble plunge not to affect Ukraine's forex market - expertsIn addition, foreign currency proceeds from exporters have increased, including 46% of the currency sales in March being provided by mining and metallurgical companies, 36% - by agribusinesses. Also, businesses sold foreign currency to pay taxes for 2017.

Solohub stressed that all these factors contributed to the strengthening of the hryvnia, which affected the prices of fuel and imported goods, and in the future will favorably affect inflation expectations.

UNIAN memo. Ukraine's international reserves as of April 1, 2018, amounted to $18.191 billion, which is 3.3% lower than the figure at year-start.

In 2017, Ukraine's international reserves increased by 21% - to $18.808 billion. The National Bank improved the outlook for Ukraine's international reserves at the end of 2018 to $21.6 billion from $20.5 billion forecast earlier, expecting about $2 billion this year from the International Monetary Fund, as well as loans from the European Union and the World Bank.