In 2019, the Ukrainian national currency has appreciated by 19%, which allowed the country to lead the ranking of currencies prestigious publication Bloomberg for growth.
It is reported by the Country.
Ukrainians began to wonder what influenced such a dramatic rise in the exchange rate.
First, the main factor that resulted in an unplanned strengthening of the hryvnia, experts say large amounts of foreign investments in Ukrainian sovereign bonds.
Director of corporate analysis ICU Oleksandr Martynenko claims that the internal factors can be attributed to record revenue of exporters of agricultural products.
“The foreign currency proceeds from investors in government bonds, a record earnings of exporters of agricultural products and a significant reduction in devaluation expectations on the currency market were key factors that led to the strengthening of the hryvnia in the fourth quarter of 2019,” says Martynenko.
Second, there are external reasons that explained the head of “EXANTE Ukraine” Vladimir Godforsaken. According to him, the situation was affected by investors ‘ demand for risky assets, and by an internal examiner attributed the slowdown in inflation and economic growth.
“In particular, helped the growth of investor demand for risky assets amid a lull in trade wars, as well as loose monetary policy, which leads the fed, the ECB, China and other countries. Fortunately, the story of the impeachment of trump because of a telephone conversation with Vladimir Zelensky has not had a lasting influence on either the economy or the investment. To domestic drivers of growth include the slowdown of inflation below forecast values and economic growth by leaps and bounds – and this is also despite the strengthening of the national currency. The economy received a boost due to the influx of capital,” commented Godforsaken.