This week the U.S. dollar exchange rate against the hryvnia is expected to decline to UAH 27.75, according to a weekly forecast released by Alpari analytical company.
Over the past week, the U.S. dollar exchange rate against the hryvnia has decreased in all segments of the foreign exchange market by an average of 40 kopecks. Since December 6, the official exchange rate of the U.S. dollar set by the NBU has dropped from UAH 28.29 to UAH 27.96.
According to UkrDealing, demand/supply of the dollar on the interbank market, during the same period decreased from 28.26/28.28 to 27.96/27.97.
The main reason for the decrease of the dollar against the hryvnia is the growth of activity on the Ukrainian debt market. Because of problems with closing the gap target in the budget, the Finance Ministry has started to look for new sources of budget financing. For this, the Finance Ministry began to actively borrow money in the market. Given the difficult political situation, borrowing had to be at higher interest rates.
According to experts, the activity of investors and their demand for debts denominated in the hryvnia is causing it to strengthen. (Ukrinform/Business World Magazine)
