The FX Market: The NBU Stops Selling, Starts Buying.
5 June 2008
According to the National Bank’s (NBU) Deputy Head, Alexander Savchenko, the bank bought out USD 280 mln of the excessive FX supply on the interbank market in May. Concorde Capital: This is the first time this year that the NBU’s FX interventions were positive. During January-April the NBU sold USD 1.8 bln of its reserves to maintain the hryvnya’s exchange rate. The excessive FX supply observed in May was mainly due to the revival of export growth in the steel industry (a major FX provider) which had been declining early in the year. In May, the interbank UAH/USD exchange rate has been fluctuating between 5.00 and 5.05. The NBU has maintained its official UAH/USD rate at 5.05 since April, 2005.
