NBU: Ukraine's forex market remains calm in December

The National Bank of Ukraine (NBU) says Ukraine's foreign exchange (forex) market remained calm in December 2018.

"The FX markets remained calm during December owing to the increased FX supply from the bank clients, as well as improved market sentiment amid the new IMF [International Monetary Fund] program approval and the disbursement of official financing from other international organizations," the NBU said in its Macroeconomic and Monetary Review for December 2018, posted on the NBU's website.

"As a result, the net FX purchases of the NBU amounted to US$339 million. Along with the disbursement of official financing, this led to an increase in international reserves to US$20.7 billion as of December 27, 2018, or 3.5 months' of future imports," it said.

Hryvnia market rates continued responding to past policy rate hikes and the government operations, the NBU said.

As UNIAN reported, Ukraine on December 21, 2018, received the first disbursement worth US$1.4 billion under the new Stand-By Arrangement approved by the Executive Board of the International Monetary Fund (IMF) on December 18.

In this connection, Ukraine's international reserves grew to US$20.1 billion, a five-year maximum from January 2014.

The new IMF cooperation program with Ukraine provides for disbursements worth US$3.9 billion within 14 months.