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National Bank: Situation on Ukraine’s currency market under control

Situational factors, first of all, political ones, caused a decline in the hryvna rate - expert

KIEV, February 06. /ITAR-TASS/. The situation on Ukraine’s currency market remains under control, head of the advisors group to the governor of the National Bank of Ukraine Valery Litvitsky told a news conference on Thursday.

“Situational factors, first of all, political ones, caused a decline in the hryvna rate,” he said, expressing hope that “soon these factors will take backseat.”

Litvitsky noted that speculative traders warmed up the currency market.

Last year the positive groundwork was laid for Ukraine’s currency market, in particular “stable prices, attractive deposit interest rates and the phase of revival for economic activity,” he said.

The expert did not rule out that the formation of a new cabinet in Ukraine and outcomes of “a discussion on amendments to the Constitution” might significantly influence the currency market.

“What will be the composition of the government? How will it influence prospects for trade and financial cooperation with other countries that have an impact on Ukraine’s payment position? We will soon get answers. We just need to wait,” Litvitsky said.

The US dollar rate to Ukraine’s hryvna that had been steadily growing since the beginning of the year reached its record high of 9.4 hryvnas per dollar since 2008 during trades at the interbank currency market on February 8. At the end of the trades rates slightly reduced, making 8.95/9.05 hryvnas per dollar.

Since the beginning of the year, when the US dollar cost 8.2 hryvnas, the Ukrainian currency has declined by around 10%. Last time the dollar cost higher than 9 hryvnas in September 2009, while in December 2008 it jumped up to 10 hryvnas for short periods.