For the past two months, the foreign exchange market in Ukraine has been showing a great ability to self-balance, so the National Bank didn’t have to resort to frequent foreign currency interventions.
Deputy Head of the National Bank of Ukraine Yuriy Geletiy said this in an interview with ZN.ua.
According to him, if we compare the number of interventions the regulator was dealing with since the beginning of 2021, with their frequency for the corresponding periods of previous years, then interventions have significantly decreased.
“Last year, if I’m not mistaken, we entered the foreign exchange market 29 times in three months, and this year – about ten times,” Geletiy said.
He explained why the need for intervention has diminished.
"We see that the market ... has become more balanced, there are fewer significant exchange rate fluctuations. Our priority remains unchanged – supporting the regime of floating exchange rate origination. That is, we are not setting any exchange rate benchmarks that the population or business could be guided by. What will be the course, the market decides. At the same time, we are targeting inflation," the deputy head of the National Bank emphasized.
He added that Ukrainians are already accustomed to the fact that the exchange rate can fluctuate in both directions, and this is absolutely normal.
As a reminder, Andrey Goilov, an analyst at RoboForex, told the Segodnya website that at the moment the NBU was very limited in measures to support the stability of the exchange rate due to a decrease in gold and foreign exchange reserves.
It was also reported that experts admitted the possibility of the hryvnia exchange rate collapsing in the autumn.
In January-February 2021, Belarus's GDP amounted to BYN 23.3 billion, or in comparable prices 100.8% compared to the same period in 2020. And although this is more than the last year’s indicator, compared to 2019, the GDP index has not changed.
In 2020, Belarusian meat processors managed to increase the production of sausages and smoked meats due to the growth of domestic demand amid the coronavirus epidemic, as well as due to the favorable conjuncture of the Russian market.
2020 not only did not solve the problems of Belarus, but also added new ones. So, the expectations that next year it will be possible to get significant benefits due to lower energy prices, were not satisfied: the gas price remains at the level of 2020, and the oil price will even increase due to the tax maneuver in Russia. The question of the timing of the receipt of the second part of the Russian loan funds remains unresolved.
The US Congress approved the 2020 Bill of Belarusian Democracy, Human Rights and Sovereignty.
In January-September 2020, the GDP of Belarus amounted to BYN 106.6 billion, or in comparable prices 98.7% over the same period in 2019. In addition to the coronavirus epidemic and two currency crises, the main impact on the economic decline was made by the decrease in turnover in the petrochemistry and mechanical engineering.