The NBU’s removal of restrictions on the exchange rate has strengthened the hryvnia.
The removal of exchange rate restrictions for banks has stabilized the situation in the foreign exchange market and helped strengthen the hryvnia exchange rate, reported the National Bank of Ukraine. According to the bank, the removal of restrictions on banks setting the rate for the sale of cash currency has resulted in fluctuation reductions in the cash segment of the foreign exchange market and helped strengthen the rate after a significant jump in mid-May. Another consideration is that the restrictions on the rate for the sale of cash currency also limited the rate for the purchase of cash currency by the population. Therefore, under such conditions, banks could not offer rates at which citizens would be willing to sell cash currency. As a result, the gray segment of the foreign exchange market grew, and the risks of situational fluctuations in the exchange rate increased.