Ukrainian individual demand for U.S. dollars jumps in September

Individual demand for foreign cash increased substantially in September, Olena Shcherbakova, the head of the monetary policy department at the National Bank of Ukraine (NBU), said on Sept. 23. From the start of the month till today, we have ‘minus’ USD 230 mln,” she said. Remarkably in August, net individual demand for the whole month was USD 201 mln, she said.

Alexander Paraschiy: The situation at the ForEx is very complicated. On the one hand, export proceeds indeed declined due to the occupation in the east. On the other, the NBU has excessively tightened administrative pressure, thus triggering extra nervousness at the market, the creation of multiple exchange rates and, subsequently, boosting the “black market.” So it’s no surprise to see growing individual demand for foreign cash that’s merely being fueled by panic amid the scarce supply of foreign currency for the population.