The National Bank provided banks with dollars and euros worth more than $60 million in equivalent value

Demand from banks for foreign currency cash in Ukraine remains moderate. During transactions on November 4, the National Bank fulfilled requests from four financial institutions and provided them with $40 million and €21.4 million to replenish their cash reserves.

The goal is to provide financial institutions with the necessary foreign currency reserves to meet customer demand.

According to the NBU, four banks participated in the operations. The regulator announced an offer totaling $50 million and €50 million, while the total volume of submitted applications amounted to $40 million and €21.4 million. All applications were fully satisfied.

Thus, the actual demand from banks turned out to be lower than the amount of foreign currency offered by the NBU. Based on the results of the operations on November 3–4, the regulator’s supply exceeded the aggregate demand from financial institutions by more than three times.

The National Bank notes that this indicates a sufficient supply of foreign currency cash in the banking system and the absence of systemic problems with cash reserves.

The hryvnia is strengthening; the NBU will continue foreign exchange operations

The National Bank reminds that under a managed floating exchange rate regime, the hryvnia exchange rate can fluctuate in both directions—it can both weaken and strengthen.

In particular, the official hryvnia exchange rate, set on November 4 for the following business day, strengthened to 45.5 UAH/$.

At the same time, the selling rate of the U.S. dollar on the cash foreign exchange market as of November 4 stood at 46.4 UAH/$.

Despite moderate demand from banks for cash foreign currency, the NBU plans to conduct similar operations on November 5 as well. The regulator explains this as a precautionary measure to maintain a sufficient level of cash foreign currency liquidity so that banks can continuously meet the public’s needs.

This was reported by the NBU’s press service.

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As long as partners provide funds, the NBU will have the resources to maintain the exchange rate, says economist Oleg Pendzin.

The official exchange rates for the dollar and the euro fell on October 29.