The National Bank tied the abolition of the fixed rate not to a specific time, but to macroeconomic indicators. The regulator intends to keep the dollar at the level of UAH 36.56 until the situation on the foreign exchange market improves and inflation stabilizes.
The fixation of the hryvnia exchange rate itself had a positive impact on the economy of Ukraine during the war, said the head of the National Bank Andriy Pyshny, NV reports. According to him, without this “last year’s inflation would have been about 34% instead of 26.6%.”
“Process [скасування фіксованого курсу] will be determined not by time limits, but by the presence of the necessary macroeconomic conditions. Until they appear, the official exchange rate will remain fixed,” Pyshny explained, noting that such conditions are:
- reducing the role of the National Bank in balancing the market;
- recurrence of inflation to be a nominal anchor for expectations.
Lowest rate since summer
In February, the cash exchange rate of the hryvnia against the dollar noticeably strengthened. In particular, the weighted average rate of cash sales operations amounted to UAH 39.89/USD, and by the end of the month – UAH 38.94/USD. This is the lowest exchange rate since August and July 21, 2022 respectively.
As Danilo Getmantsev, head of the parliamentary committee on finance, tax and customs policy, explained, several factors influenced the stabilization of the foreign exchange market. In particular:
- the decision of the NBU to increase the norms of mandatory reserves for deposits on demand;
- cessation of monetization of the budget deficit;
- rhythmic flow of foreign aid in planned volumes;
- continuation of special deposit products;
- preparation for the spring sowing campaign;
- stabilization of currency expectations against the backdrop of a relatively better situation in the energy sector and the absence of a full-scale escalation on the anniversary of the start of the war.
What dollar exchange rate was set by banks on March 20
On the morning of March 20, Ukrainian banks set the cash rate of the dollar at UAH 38.4/38.9 (buy/sell). This is for 5 kopecks. more expensive purchase than the day before, as well as 4 kopecks. – e sale.
Among large banks, the most expensive dollar is bought by Credit Agricole Bank – UAH 38.6 each, as well as Sberbank and Sens Bank – UAH 38.35 each. The cheapest is Universal Bank, UAH 37.6.
Credit Agricole Bank put up for sale the highest rate – UAH 39.3 each, as well as Sberbank – UAH 39.15. The lowest are PrivatBank, UAH 38.6 and Universal Bank, UAH 38.8.
As GLOBAL HAPPENINGS reported, according to Herman Marchenko, Director of the Treasury Department of Kominbank JSC, small fluctuations in the dollar exchange rate are expected from March 20 to 26 – UAH 0.2-0.3. However, despite this, in general, the cash rate will not cross the “border” of 38-39 UAH.
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