The IMF representative said the reasons for the growth of the hryvnia

Strengthening and depreciation of the national currency of Ukraine is the result of “floating” exchange rate, said the IMF representative.

Appreciation and depreciation of hryvnia is the result of “floating” rate. About it the representative of the International monetary Fund in Ukraine Longman Jost said in an interview Espreso, reports the with reference to

“Today the exchange rate is determined by supply and demand. But the national Bank focuses on inflation and allows the exchange rate to move in accordance with supply and demand,” — said Longman.

According to him, it is difficult to determine the main factor that led to the appreciation of hryvnia. “There is a continued substantial inflow of funds from the Ukrainians, who are working abroad. The prices for traditional Ukrainian exports high at the same time as the price of Ukrainian imports — for the same gas, has decreased. Two consecutive years of unprecedented harvest — this also leads to the appreciation of the national currency. The government has offered attractive rates on national bonds, has increased the demand for these securities,” — said the IMF representative.

Longman believes that the appreciation of hryvnia for consumers who have to buy imported goods, is winning. “These products will be cheaper. Same for companies that would like to upgrade their production assets and, if they are imported, the acquisition of these imported production assets will be cheaper. Ukrainian households that include heat or gas burner in the kitchen also feel that gas is cheaper. But about exporters convert foreign currency revenues, they receive less in UAH”, — he said.

Leave a Reply

Your email address will not be published. Required fields are marked *