March 11, the national Bank of Ukraine sold $ 350 million of reserves.
As reported in the press service of the NBU, such measures were necessary to maintain the hryvnia and the smoothing of sharp fluctuations of the exchange rate.
“The demand for currency continues to significantly dominate the offer, however, the national Bank for the second consecutive day actively smoothed exchange rate fluctuations and sales today with the goal of 350 million dollars”, — reported in the NBU.
The regulator noted that economic reasons for the collapse of the national currency and a sharp increase in demand for foreign currency explain the panic in the financial markets because of the epidemic of the coronavirus.
The NBU said that the decline in prices for Ukrainian exports kompensiruet decline in import prices, particularly for energy.
According to the NBU, Ukraine’s international reserves as at March 2020 amounted to 26 billion dollars, which will allow the country to counteract foreign exchange fluctuations, caused by the spread of Chinese coronavirus in the world.
Note that since the beginning of the week, the NBU has already sold 620 million dollars from reserve 270 million on March 10 and 350 million on March 11.
The regulator said that fluctuations in the currency market reduced the demand for government bonds, however, foreign investors do not hurry to withdraw their money from Ukraine.
Also, the Bank noted that despite the fall of demand for Ukrainian government bonds, foreign investors do not withdraw funds from Ukraine.