First, the NBU supported hryvnia new form of intervention on the exchange rate 27,687 UAH/$1
The national Bank of Ukraine (NBU) on Friday carried out the first sale of foreign currency within foreign exchange intervention under the new form of query about the best course, the introduction of which provided a Strategy for foreign exchange intervention for 2016-2020.
“The national Bank entered the market with intervention in this form to smooth excessive fluctuations due to temporary factors. The volume of the intervention amounted to USD 10 million Weighted average rate, on which there had been intervention amounted to 27,687 UAH/$1″, – stated in the message of the Central Bank.
According to him, given the proven performance of a new form of currency intervention, the national Bank plans to continue if necessary use this tool to smooth excessive fluctuations in the currency market.
“Currency intervention in the form of a query about the best course proved to be effective as a result of its conduct, the hryvnia at auction ceased to lose ground, and the auction ended at around 27,60/27,70 UAH/$1” – appears in the release review by the Director of the Department of public markets, the NBU Serhiy Ponomarenko.
The regulator indicates that at the same time he will continue to conduct and intervention in the form of foreign exchange auction and recalls that the volume of international reserves at the beginning of January amounted to $15.5 billion, and this is sufficient for sales of foreign currency in the course of the intervention, and to perform the obligations of the government and the NBU.
NBU indicates that from the beginning of 2017, he carried out during the auctions, the net sale of foreign currency in the amount of $70.1 million, including the auction on Friday in order to prevent excessive fluctuations in the exchange rate of the hryvnia.
As reported in the new form of intervention, the national Bank provides banks have a query about the price of the purchase/sale of foreign currency through the trading and information systems Bloomberg and Reuters, and received offers of banks enters into a contract with the one that offers the best price.
In early January, the NBU reported that it had selected the 20 banks who can participate in the first quarter of 2017, this new form of currency intervention.