The demand for foreign currencies will continue to decline (OPINION)

16 September 2014 10:10  1979252 080160
The demand for foreign currencies will continue to decline (OPINION)

The demand for foreign currency by the public in September may continue to decline due to high selling rate of dollar and wide spread.

This was reported by Maria Salnykova, the expert of information-analytical center FOREX CLUB in Ukraine.

According to her, people will be deterred from buying foreign currency primarily by the discrepancy between the inflation and devalution dynamics in the country on the one hand, and the wages on the other hand.

"Thus, the inflation since the beginning of the year increased by 12.9%, devaluation was 68%, and the average wages, according to the Ukrainian State Statistics Service, in January-July increased by only 7.2%," - Salnykova said.

Also, in her opinion, the reason for low demand is high selling rate of foreign currencies and limited offer of currency in exchange offices.

"Despite the fact that earlier this month the dollar stabilized somewhat, devaluation tendencies will continue to be high, which in turn will deter people from selling foreign exchange savings. Also, the parliamentary election will contribute to the uncertainty in the foreign exchange market during this period," - Salnykova said.

She also noted that the volume of foreign currency bought by population in August fell compared with July by 13.3% to 585.3 million dollars, the volume of sales fell by 17.8% to 384 million dollars. Such dynamics were caused by the devaluation of the hryvnia and wide spread in foreign currencies.


Ekonomicheskaya Pravda

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