Photo from UNIAN
In the past six months, nonresidents' investment in government domestic loan bonds increased by about US$2.1 billion.
Chief expert at the National Bank of Ukraine (NBU) Council Vitaly Shapran says the situation in foreign markets, which has been favorable for Ukraine over recent weeks, contributes to the rapid strengthening of the hryvnia, Ukraine's national currency.
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In particular, the situation in the markets of iron ore raw materials, rolled steel and most grains, which traditionally account for a significant share of domestic exports ensuring the country's foreign exchange earnings, has been favorable for the country, the Ukrainian news outlet Apostrophe reported, referring to the expert.
"Secondly, apart from a certain seasonality factor, nonresidents' investment in government domestic loan bonds increased by UAH 55 billion (approximately US$2.1 billion) in the past six months," Shapran said.
The expert added that the inflow of funds from nonresidents onto the market of the said bonds is associated with a high yield on bonds in national currency (about 20% per annum for some securities).
In turn, Alpari senior research analyst Vadym Iossub said that the long-term trend in strengthening the hryvnia started back in February, "although it does not mean the dollar was always weakening, as there were various periods when the U.S. currency rose in price."