Page 47 - UKRRptSept19

In 2019, the NBU cancelled the mandatory sale of FX proceeds by businesses to the regulator, the requirement to accumulate hryvnia reserves ahead of FX purchases, and the restriction on dividend repatriation abroad. In August, the NBU allowed businesses to buy any amount of foreign currency with borrowed hryvnia funds. "This measure will enable businesses to manage their liquidity more effectively and to buy the necessary amounts of foreign currency to meet their obligations as they see fit," the central bank added.
The Russian ruble and the Egyptian pound were also among the currencies that have strength the most, by 8.3% and 8%, respectively, according to a study by Reuters. The Argentine peso lost the most value against the dollar, that is by 15%, while the Swedish krona weakened by 8.3% and the South Korean won by 6.9%, the study said.
Ukraine's national currency in July 2019 strengthened by 4.4% against the US dollar. The hryvnia had also strengthened by 9.6% since the beginning of the year as of August 1, 2019, according to the official forex rate of the National Bank of Ukraine (NBU).
The hryvnia will weaken 7% against the dollar by November 1 and by mid- February will be at 27.90, the level of the start of this year, according to a Reuters poll of Ukrainian economists. However, a similar expert poll last winter failed to predict this year’s 9% strengthening of the hryvnia. The difference was largely a net $3.5bn invested by foreigners in hryvnia bonds since January. Now, economists forecast the Finance Ministry will cap bond sales and suppress yields, currently at 16-18%, double the inflation rate.
The National Bank of Ukraine (NBU) has lifted more currency controls on FX and allowed businesses to buy any amount of foreign currency with borrowed hryvnia funds, the regulator said in a statement on August 8. "This measure will enable businesses to manage their liquidity more effectively and to buy the necessary amounts of foreign currency to meet their obligations as they see fit," the central bank added. The NBU continues the currency liberalisation as macroeconomic conditions improve following the 2014-2015 financial and economic meltdown. The regulator has already cancelled more than 30 FX restrictions since the beginning of the year. In 2019, the NBU cancelled the mandatory sale of FX proceeds by businesses to the regulator, the requirement to accumulate hryvnia reserves ahead of FX purchases, and the restriction on dividend repatriation abroad.
NBU weakens official forex rate to UAH 25.53 to dollar. On August 2, hryvnia quotations against the dollar on the interbank currency market by the close of trade settled at UAH 25.51/25.56 to the dollar. The National Bank of Ukraine (NBU) on Friday evening strengthened the official hryvnia exchange rate by 19 kopiykas, bringing the national currency to UAH 25.53 to the dollar.
Ukraine's central bank set the following official exchange rates of the hryvnia against leading foreign currencies for August 5: US$100 costs UAH 2,553.7711 (UAH 2,534.9919 as of August 2); EUR 100 costs UAH 2,836.2182 (UAH 2,797.8706 as of August 2); On Friday, August 2, hryvnia quotations against the dollar on the interbank currency market by the close of trade settled at UAH 25.51/25.56 to the dollar. Hryvnia quotes against the euro settled at UAH 28.32/28.37.
Ukraine central bank removes restriction on foreign currency purchases
The National Bank of Ukraine (NBU) decided to allow Ukraine-based
47 UKRAINE Country Report September 2019 www.intellinews.com