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The National Bank continues to closely monitor developments in the forex market and is ready to continue interventions if they are required to prevent sharp fluctuations.
NBU Deputy Governor Dmytro Solohub has said the current strengthening of the Ukrainian hryvnia in the foreign exchange market is facilitated by the sale of currency by businesses for the sake of tax payments, as well as a covered demand for currency over the previous weeks.
"The rate has been strengthening since Friday afternoon. In particular, the fact that enterprises are selling currency in connection with the period of tax payments contributes to hryvnia strengthening. In addition, we can say that business and banks have met their needs for currency over the previous weeks, and there is no put-up demand," the official said in a comment that is at UNIAN disposal.
It is noted the excess of the supply of currency in the market over its demand made it possible for the National Bank to redeem an excess of currency in the amount of about $17 million to replenish international reserves.
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"The National Bank consistently adheres to the position that its task is not to keep the hryvnia rate at a certain level, but to reduce the intensity of fluctuations and, therefore, prevent expectations worsening and formation of risks for reducing inflation to the target," the NBU said.
The regulator recalled that last week it entered the market daily, having sold a total of $215 million. Since 3Q start, the NBU sold nearly $500 million.
"The National Bank continues to closely monitor developments in the forex market and is ready to continue interventions if they are required to prevent sharp fluctuations," the central bank said.
It is also emphasized there are no fundamental reasons yet for UAH depreciation, as evidenced by the rate strengthening from Friday afternoon after a period of decline under the influence of seasonal, situational, and psychological factors.