“December was also a month of record inflows of foreign financial aid.”, — write: www.unian.ua
December was also a month of record inflows of foreign financial aid.
Last month, the NBU sold $5.3 billion on the market as part of currency interventions / UNIAN collage, photo ua.depositphotos.comIn December, the National Bank sold $5.3 billion from gold and foreign exchange reserves to support the hryvnia exchange rate, which became a record in history. This was reported by the Center for Economic Strategy (CES).“Over the past month, the National Bank sold $5.3 billion on the market as part of currency interventions, and bought only $430,000. This amount of currency sales became an absolute record for all time, surpassing both the past months of full-scale invasion and previous historical peaks during the corona crisis ($2.4 billion in March 2020) and the Russian invasion of eastern Ukraine ($3.2 billion in October 2014)”, the message states.
Analysts noted that currency interventions allow the NBU to ensure relative exchange rate stability: the hryvnia is devaluing, but at a moderate pace.
In December, the main reason for the large sale of the currency was record monthly expenditures of the general fund of the state budget – UAH 492 billion. The CES noted:
“The previous December 2023, the main increase in spending was on the purchase of weapons and ammunition, which requires more imports and foreign exchange spending. The situation is likely to be similar this December.”
December was also the month of record receipts of foreign financial assistance ($9.2 billion). Thanks to this, it can be expected that gold and foreign currency reserves, which amounted to $39.9 billion in November, will remain at a sufficient level.
Exchange rates and international reservesOn Tuesday, January 7, the National Bank of Ukraine set the official exchange rate of the dollar to the hryvnia at the level of UAH 42.20/dollar, i.e. the hryvnia weakened by 11 kopecks compared to the previous rate. Thus, the dollar once again renewed its all-time high.
As of December 1, international reserves of Ukraine amounted to 39.925 billion dollars. According to the NBU, in November they increased by 9.1%. Such dynamics were caused, on the one hand, by significant volumes of income from international partners, and on the other hand, by a decrease in the volume of net sales of foreign currency by the National Bank on the foreign exchange market.
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