The Ministry of Finance will sell the National bank 340 million to support the hryvnia

28 August 2014 12:18  1377761 078665
The Ministry of Finance will sell the National bank 340 million to support the hryvnia

The Ministry of Finance will sell 340 million dollars to the National Bank to replenish foreign exchange reserves that will enhance the central bank's ability to stabilize the exchange rate dynamics.

This was announced by the Prime Minister Yatsenyuk, speaking during the signing of the Memorandum of Cooperation between the Cabinet of Ministers of Ukraine and the Ukrainian World Congress.

"In the morning, we decided to have the Ministry of Finance sell 340 million dollars to the National Bank reserves in order to stabilize the foreign exchange rate market in Ukraine. This will increase the reserves of the National Bank and will enable further stabilization of the foreign exchange rate," - he said.

As reported, on August 27, during the auction, the historical minimum in the interbank market was updated - the quoting reached 14,3-14,7 hryvnia to the dollar.

In addition, on August 27, the National Bank lowered the official exchange rate by almost 25 kopiykas - to 13.890974 hryvnia to the dollar, updating the historical minimum recorded the day before - 13.659408 hryvnia to the dollar.

The weakening of the national currency is caused by a complex military-political situation, as well as a limited supply of currency in economic decline and depressed economic activity.

The Ministry of Finance predicts the average exchange rate in 2014 at around 12 UAH per dollar.

According to the head of the NBU, Valeria Hontaryeva, the balanced hryvnia exchange rate is 11,5-11,9 hryvnia to the dollar, and its fall is caused by panic reaction to events in the east.

Interfax-Ukraine

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