The NBU explains why the hryvnia strengthened at the beginning of the year.

In January 2024, the situation on Ukraine’s foreign exchange market gradually improved, recovering amidst the fading effects of significant budget expenditures at the end of the year, explained NBU Deputy Chairman Yuriy Geletiy.

According to him, in the first half of January the daily volume of interventions, although slightly decreased compared to December values, remained significant – at the $150M level, and in the second half of the month, the level decreased to $80M. The exchange rate responded to the improvement in the balance of supply and demand – since the beginning of the year, it has strengthened by 1.2%.

Geletiy said that the current volume of international reserves enables the NBU to ensure exchange rate stability moving forward.

For his part, NBU Chairman Andriy Pyshnyy noted: “Ukraine has lived for a month with disruption in the rhythm of international aid thanks to the gathered internal resources. We managed to keep the situation under control and avoid emission budget financing.”