The national Bank explained why the hryvnia strengthened in April

In April, the hryvnia has appreciated against the dollar by 2.3%.

In April, the hryvnia strengthened due to the record inflow of foreign investments in bonds of domestic government loan. This is stated in the macroeconomic review of the National Bank.

It is noted that because of this, the supply of foreign currency from the Bank clients exceeded the demand for it.

“As a result, the foreign exchange market for most part of the month prevailed revalvatsionnye trend – the hryvnia has strengthened by 2.3% m/m to the dollar and 3.1% m/m to the Euro”, – stated in the review.

The national Bank intervened in the foreign exchange market in order to replenish international reserves and to smooth out excessive fluctuations in the market. At the end of the month the positive balance of NBU operations on the currency market amounted to almost 300 million dollars.

The NBU noted that in the global financial markets, the situation for countries with rezvushkina markets, with the exception of the last decade of the month remained favorable thanks to the easing of monetary policy by leading Central banks.

“However, the emergence of positive US economic data on weak Eurozone data led to the rapid strengthening of the U.S. dollar. As a result, in late April, most of the currencies of countries with emerging markets depreciated,” reads the review.

Note, since the beginning of year the hryvnia exchange rate to dollar increased by 4.3%, Euro – by 7%.

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