Ukrainians are increasingly buying foreign currency. The NBU had to increase interventions to a three-month high.

According to ICU analysts, demand for foreign currency among Ukrainians remains at a very high level and is forcing the NBU to sell large volumes of it from its international reserves to maintain the hryvnia exchange rate at close to the current level and reduce inflationary pressure.

Total net currency purchases last week decreased by 9% to $500M. In the interbank market, net purchases decreased by 10% to $234M, and in the retail segment by 8% to $266M. At the same time, the volume of NBU interventions increased by 22% to $877M.

The last time the need for such significant interventions arose was in July when the NBU halted the sharp weakening of the hryvnia exchange rate at ₴41.5 per $1. Through such interventions, the official hryvnia exchange rate remained almost unchanged during the week and on Friday was fixed at the same level as the week before, ₴41.19 per $1.

Provided that international aid arrives regularly, the NBU will be able to continue to pursue a similar policy, preventing a significant weakening of the hryvnia exchange rate.