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In terms of foreign trade balance, the situation is favorable for Ukraine, while uncertainty and panic are putting pressure on the market.
Head of Research at Concorde Capital Oleksandr Paraschiy says the forex rate of the hryvnia, Ukraine's national currency, may stabilizes at the government's previously forecasted annual average rate at UAH 27 per U.S. dollar within a month, and after this, hryvnia may rebound.
"Moderate devaluation is only a plus for the economy. The situation is such that we are reaching last year's forecast complied by the economy ministry at UAH 27 per dollar on average for the year. I think, the exchange rate will stabilize somewhere at this level within a month. Then the hryvnia can even strengthen," the expert told UNIAN on March 19.
Paraschiy explained that in terms of foreign trade balance, the situation is favorable for Ukraine, while uncertainty and panic are putting pressure on the market.
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"Panic will pass. It is possible that at some point in the near future the withdrawal of foreign speculators from domestic government loan bonds market will put pressure on the hryvnia. But when all this pressure is over, the factor of trade balance will be on top," the expert added.
UNIAN memo. The National Bank set the official forex rate for Thursday, March 19, at UAH 27.27 to the U.S. dollar, while at UAH 29.79 per euro.
Quotations of the hryvnia against the U.S. dollar in the interbank currency market by noon were at UAH 27.80/27.85 per dollar, whereas against the euro at UAH 30.15/30.18.
The U.S. dollar remains against the hryvnia at UAH 28.50 in Kyiv's currency exchange booths, while euro dropped to UAH 30.90.