REUTERS
Stock indices have started to grow, while bond and stock quotes, including those of Ukrainian eurobonds, have improved.
Deputy Governor of the National Bank of Ukraine (NBU) Oleh Churiy says the situation on the world's financial markets and Ukraine's forex market is stabilizing after a panic over the rapid spread of the coronavirus. What is more, the U.S. authorities have decided this week to inject US$2 trillion into their economy.
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"We see the markets react positively today. Stock indices have started to grow. Quotations of bonds and stocks are improving, even if you look at quotes of Ukrainian eurobonds – their yield has decreased significantly," he said during an online briefing on March 27.
The situation on Ukraine's forex market is also better.
"If last week the National Bank's interventions exceeded US$1 billion to smooth out fluctuations in the foreign exchange market, this week the situation is more or less balanced. For two days, the National Bank has not entered the market at all, while the volume of interventions over three days was less than US$80 million," he added.
Churiy says households' demand for foreign currency has also plunged – banks are now buying more currency than they are selling.
However, the demand for currency is still mainly formed by residents since nonresidents' portfolio of government bonds shrank only by a sum equivalent to US$$300 million, which is a small amount for the Ukrainian forex market with a daily trading volume being about US$500 million.