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Thursday, August 17, 2017

NBU intervenes to prevent devaluation of currency

The National Bank of Ukraine (NBU) announced that it intervened in the interbank foreign exchange market on Tuesday by offering two-way quotations.

The intervention was meant to send a signal that the NBU will move to mitigate any adverse impact of situational and sentiment-related factors on the exchange rate of the Ukrainian hryvnia.

The NBU sold a limited amount--$69 million--of foreign currency, alleviating excessive volatility in the market.

NBU head Valeria Gontareva said the intervention had satisfied 60 percent of the bids for the purchase of foreign exchange that accounted for almost one-third of market turnover and helped alleviate tension in the market.

It is not the first time the NBU has intervened in recent days--last month, the NBU purchased $80 million in foreign currency.

"Bearing in mind the objective of expanding the stock of international reserves, the National Bank expects that the market conditions and an additional inflow of foreign exchange into the country will subsequently contribute to the build-up of international reserves," Gontareva said.