NBU: Hryvnia strengthens by 0.5% to dollar in May

The national currency of Ukraine, the hryvnia, strengthened by 0.5% to the dollar at the official forex rate in May.

According to the macroeconomic and monetary review of the National Bank of Ukraine for May, published on the central bank's website, the Ukrainian hryvnia has strengthened by 0.7% to the dollar since the beginning of the year.

The National Bank explains the strengthening of the national currency with the fact of applying a tight monetary policy, as well as the preservation of a favorable external price environment for Ukrainian exports.

Read alsoUkrainian Treasury's balance doubles in MayAt the same time, the regulator notes that the strengthening of the dollar and the deterioration of financial conditions for emerging markets have affected the Ukrainian foreign exchange market, which was manifested by the "withdrawal" of some non-residents from the hryvnia domestic government loan market.

As a result, the volume of net currency purchase by the National Bank fell to $181 million in May against $303 million in April.