Page 39 - UKRRptOct19

budget draft at 383.8b hryvnia Ukrainian 2020 Draft Budget Envisages Deficit of 2.09%/GDP
7.0​ FX
The hryvnia is at its strongest level against the dollar in three years, ​with the National Bank of Ukraine setting today’s official rate at UAH24.8822 per dollar. The last time the national currency was stronger than 25 to the dollar was in the first half of August 2016. The hryvnia is also stronger against the Euro, with today’s official rate at UAH27.47. One of the world’s best-performing currencies, the hryvnia has appreciated 9% against the dollar this year.
The remittances of Ukrainian labourers abroad rose by 5% year-on-year to $5.5bn in January-June​, the National Bank of Ukraine (NBU) reported on September 25. According to the NBU estimate, around half of remittances were transferred through informal channels, while the rest occurred via banking transfers and international money transfer systems. The January-June remittances accounted for about 8.6% of GDP. Around one-third of labour remittances come from Poland, followed by the Czech Republic, Russia and the US. Evgeniya Akhtyrko Kyiv-based brokerage Concorde Capital wrote in a note on September 26 that the remittances of labour migrants are essential for Ukraine's economy as they restrain the enlargement of the current account deficit amid a negative trade balance. "Moreover, the money transfers are apparently contribute to the ongoing appreciation of the Ukrainian national currency. The current fast growth in private consumption implies that a big chunk of money transfers immediately moves to the domestic FX for exchange," she added.
39​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com