NBU armed with USD 1 bln to defend hryvnya in September

National Bank of Ukraine Head Volodymyr Stelmakh said yesterday at a press conference that the NBU is ready to allocate USD 1 bln in September to support the hryvnya. Stelmakh said the interventions would take place in the form of currency auctions, where the rate is determined by demand. Mykyta Mykhaylychenko: The NBU is now looking for new ways to support the hryvnya while minimizing intervention volumes. This suggested type of auctions might not bring desired exchange rate stabilization in the short-term if the NBU does indeed sell US dollars to the highest bidders. Under the current circumstances of excessive foreign exchange demand, downward pressure on the hryvnya will persist in the coming months.