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The decline against the dollar began immediately after the successful borrowing effort by the Finance Ministry on foreign markets.
The hryvnia forex rate by year-end may remain at UAH 28.20 to the dollar, an analyst with the Alpari investment company, Maksym Parkhomenko, suggests.
According to the expert, the decline of the hryvnia against the dollar began immediately after the successful borrowing effort by the Finance Ministry in foreign markets, as reported by the RBC-Ukraine.
"On Monday, the hryvnia's fall has intensified amid news about a new coronavirus variant and lockdown in some EU countries," he said.
The current week, Parkhomenko recalled, is the last active working week of the year, during which negotiations with the IMF, as well as an auction of the Finance Ministry on the placement of government bonds, will take place. According to him, starting next week, market players will go on vacation and the situation on the markets will be neutral, which will not allow the Finance Ministry to borrow large sums on the market and generate demand for the hryvnia.
"If the hryvnia sees no support this week, there will be no factors by the end of the year that could strengthen it. And it will stand at UAH 28.20 until the end of the year," the analyst said.
Read alsoHryvnia weakens to U.S. dollar on Dec 22
On December 21, 2020, Director for Scientific Work of the Institute for Economic Research and Policy Consulting Veronika Movchan said the hryvnia forex rate against major currencies would not change much by the end of 2021; however, fluctuations are possible throughout the year.
NBU's anticrisis measures
On December 22, 2020, the National Bank of Ukraine introduced a set of anticrisis measures to support the banking sector and the economy for the period of new restrictive measures, including a lockdown (from January 8 to 24, 2021).
In particular, banks are advised to restructure loans to borrowers who have faced financial difficulties over restrictive measures and are unable to service loans.