Ukraine currency stabilizes after 5% devaluation since August

2017/10/11 0:04:55

Analyst: “Against this backdrop we are keeping our projection on hryvnia at UAH 28.0 - 28.5 per USD by year end.”

 

 


KYIV, Oct 10, 2017 – The hryvnia has been steadily depreciating since the end of August up until Oct. 4, and it stabilized at UAH 26.74/USD as of Oct. 6, Concorde Capital informed clients in an online advisory. Since Aug. 21, Ukraine’s national currency has lost 4.9%. Since early September, the National Bank of Ukraine has spent USD 220 mln on ForEx interventions defending hryvnia from a deeper drop.

 

Concorde analyst Alexander Paraschiy added: “Hryvnia weakening from September was exactly what we expected. A widening trade deficit and individual sentiments are the reasons for the U-turn. Provisional customs statistics report a USD 906 mln trade deficit in September vs. USD 657 mln a year ago. The depreciation tendency is seen to continue through the upcoming month with budget spending fueling the trend on top of other factors. As of Oct. 1, the state treasury had accumulated UAH 60.0 bln of public funds (near 2.2% of GDP) and the major part of those funds will be injected into the economy in 2017 on top of regular budget spending. This factor promises extra depreciation pressure through November-December. Against this backdrop we are keeping our projection on hryvnia at UAH 28.0 - 28.5 per USD by year end.”

 

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For more information, link here: www.concorde.ua 

 

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