Photo from UNIAN
There is also a psychological factor, namely businesses' favorable expectations.
Deputy Governor of the National Bank of Ukraine (NBU) Dmytro Sologub says the hryvnia, Ukraine's national currency, is strengthening due to an increase in non-residents' demand for Ukrainian assets, favorable trading conditions for Ukrainian exporters, receipts from labor migrants, and low dividends repatriation.
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"There are several factors that contribute to the fact that the hryvnia is strengthening against the U.S. dollar. Of course, the first one is the behavior of non-residents. We see how their demand for Ukrainian assets increased, first of all, for government domestic loan bonds," he said at a roundtable in Kyiv on August 20.
Moreover, the positive factors include favorable trading conditions for Ukrainian exporters, stable foreign exchange earnings from labor migrants and a lower volume of dividends that have been transferred abroad this year against 2018.
In addition, there is a psychological factor, namely businesses' favorable expectations, which is confirmed by the reduced volume of repatriation of dividends accrued to foreign investors against the background of the complete lifting restrictions on their payments by the National Bank.