Demand for foreign currency to increase in May and June, but no significant exchange rate fluctuations are expected — Olena Korobkova

The range of the hryvnia-dollar exchange rate on the cash market for the next two months will amount to UAH 38-40 for USD 1.

Olena Korobkova, Chair of the Board of the Independent Association of the Banks of Ukraine, made this statement during a briefing at Media Center Ukraine — Ukrinform.

In particular, she pointed out that since the beginning of the sowing campaign, the hryvnia has been on a strengthening trend. However, the slowdown of the sowing campaign, in turn, affected the increase in the price for foreign currency.

“We actually saw that since the strengthening of the hryvnia with the start of the sowing campaign, this trend has preserved quite well. Let me remind you that it was the sowing that was the reason that influenced the strengthening of the hryvnia. The fact is that farmers sell foreign currency during the sowing campaign regardless of whether the exchange rate is favorable or unfavorable. That significantly affects the strengthening of the hryvnia. However, as expected recently, as we predicted, we are observing an increase in price for foreign currency cash due to a gradual slowdown of the sowing campaign. However, this jump was not very significant,” she explained.

According to Olena Korobkova, further moderate growth of the currency is possible in the future, and the return to the pre-war system of fuel taxation will contribute to this.

“In particular, the return to the pre-war fuel taxation system will lead to more intensive fuel imports in Ukraine at the so-called old prices, which will stimulate the demand for foreign currency in May and June. However, significant fluctuations in the exchange rate aren’t expected. In the near future, the National Bank of Ukraine will continue to stick to the regime of a fixed official exchange rate. Therefore, the range of the hryvnia-dollar exchange rate on the cash market for the next two months will amount to UAH 38-40 per USD 1.”

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