The hryvnia exchange rate reached an April high: why the NBU supports the level of 41.3

State of the exchange rate over the past week

Last week, the National Bank of Ukraine kept the hryvnia exchange rate approximately at 41.3 hryvnias per dollar, and by the end of the week even allowed it to rise by more than 10 kopecks. There is a likelihood that the NBU will continue to maintain the exchange rate stable around current values, but it may allow for its weakening over time.

During the same week, the shortage of foreign currency on the currency market increased by almost 30%, reaching 390 million dollars. This occurred due to a reduction in the supply of currency both in the interbank segment and among private clients. The NBU had to sell 551 million dollars from its reserves to stabilize the situation. This has been the fourth consecutive week where interventions were lower than average values since the beginning of the war.

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It is likely that the NBU will keep the hryvnia exchange rate at the current level for a bit longer, but over time, it may allow for its weakening

', - a prediction by the investment company ICU.

In the first four days of the week, the hryvnia exchange rate fluctuated from 41.35 to 41.37 hryvnias per dollar, but by Friday, the NBU allowed it to strengthen to 41.22 UAH/$. To achieve this result, reserves amounting to 120 million dollars were lost. This exchange rate level was last seen in August and became the highest since April of this year.

In the last week, the NBU kept the hryvnia exchange rate stable, but spent a considerable amount from reserves to maintain it at the required level. At the same time, the shortage of foreign currency in the market increased, requiring interventions from the National Bank. Experts predict a possible weakening of the hryvnia exchange rate in the future.