The cash dollar exchange rate is expected to revert in the near future to a level close to the rate set by the National Bank on the non-cash market. This was stated by Vasyl Furman, Deputy Chairman of the National Bank of Ukraine’s Council, according to “Media Center Ukraine.”
“There were no macroeconomic grounds for the cash hryvnia to weaken, as we saw last week. It was more of a psychological factor on the part of buyers, which was speculatively fueled by sellers from non-bank financial institutions. I am convinced that the hryvnia will strengthen. Today’s official non-cash exchange rate—which stands at 36.6 (UAH per U.S. dollar—ed.)—is as close to the market rate as possible. And the cash hryvnia should fluctuate within these limits, give or take a bit,” Furman assured.
As reported, the National Bank raised the official exchange rate of the dollar against the hryvnia by 25% effective July 21—to 36.56 UAH/$. In addition, the National Bank imposed stricter restrictions on transactions involving hryvnia cards issued by Ukrainian banks abroad. Following this, the dollar exchange rate at currency exchange offices exceeded 40 UAH/$.
For its part, the NBU tightened requirements for non-bank institutions regarding the organization of cash currency trading, specifically prohibiting them from displaying exchange rates on street-side boards.