Last week, the National Bank kept the intervention volume below this year’s average weekly figure. It allowed the hryvnia exchange rate to weaken slightly. The market’s total foreign exchange deficit decreased last week. Net foreign exchange purchases decreased to $290M (-6% compared to the previous week). At the same time, the NBU increased interventions by 7% to $590M.
The official hryvnia exchange rate fluctuated in a relatively narrow range of approximately ₴41.3 and ₴41.32 per $1 during the week.
The ICU noted that the foreign exchange deficit on the interbank market decreased below $100M, which was last seen in the spring of this year. At the same time, the main pressure on the market is the increased demand for currency in the retail segment.
The NBU maintains a high volume of interventions and allows the hryvnia exchange rate to fluctuate slightly. The NBU can thus gradually weaken the exchange rate by the end of the year, at least to ₴42 per $1.