Ukraine's Exchange Rate Remains Stable Amid High Demand
The National Bank of Ukraine (NBU) has maintained control over the exchange rate by participating in trading on the interbank foreign exchange market through foreign currency interventions. This strategy, which involves selling $2.11 billion to importers, has kept the exchange rate stable at around 44.70 UAH/USD.
The high demand for foreign currency in August is partly due to the country's reliance on imports and the ongoing conflict with Russia, which has affected Ukraine's exports. The NBU sold $4.1 billion through interventions over four weeks in July, exceeding $2.11 billion in the first two weeks of August.
The international reserves are at a high level, standing at $51.2 billion as of the beginning of August. However, this trend is due to the NBU's foreign exchange interventions and debt payments in foreign currency, which slightly exceeded inflows from international partners.