REUTERS
The gradual economic recovery continued in August.
The National Bank of Ukraine (NBU) says it sold US$231.5 million on the interbank foreign exchange market in September 2020 to prop up the hryvnia, Ukraine's national currency, while forex purchases amounted to US$34 million.
An increase in demand from certain groups of importers in September against the background of investors' deteriorating appetite for emerging markets' assets fueled demand for foreign currency, the regulator said on its website.
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"This led to a slight weakening of the hryvnia against the [U.S.] dollar. Under these conditions, the balance of NBU interventions in September was negative, standing at US$200 million," the report said.
Meanwhile, the gradual economic recovery continued in August: the decline in key branches production index slowed to 1.6% year-over-year, primarily due to the trade and construction sectors. Wholesale trade also rose sharply amid improving export performance.
Boosting grain exports and transportation of construction materials curbed the decline in the transport sector.
Households' growing incomes, improving consumer sentiment and a shift to domestic tourism while maintaining restrictions on foreign travel supported retail trade.
The decline in agriculture slowed due to an improvement in livestock production.
Meanwhile, the decline in industry deepened amid decreasing power generation, still weak investment demand, a deterioration in external conditions for chemicals, and a reduction in sunflower seed stocks, which led to a further decline in the food industry.
Earlier, the National Bank of Ukraine said it would let the forex rate float and it will not address excess forex rate fluctuations.