NBU allows banks to sell 20% more cash than volume of purchased non-cash

From April 21, when calculating the amount of cash foreign currency that they can sell on the foreign exchange market, commercial banks will take into account not 100% but 120% of the volume of purchases of non-cash currency from the population, starting from April 13, 2022.

"The National Bank is consistently taking steps to minimize the multiplicity of exchange rates. This helps increase the stability of the foreign exchange market and improve exchange rate expectations. For the same purpose, the NBU expands the ability of banks to make transactions for the sale of foreign currency in cash to the population," the National Bank explained its decision on the website.

It noted that the relevant changes are aimed at maintaining a favorable situation in the foreign exchange market.

The NBU clarified that the relevant changes were enshrined in resolution No. 53 of April 20.

As reported, in March, the volume of purchases of non-cash currency by banks decreased to $300.4 million from $462.1 million in February and $523.9 million in January. The strengthening of the hryvnia exchange rate in the cash market by UAH 1.15 in February, and by another UAH 1.2 in March to UAH 37.75/$1 at the official exchange rate of UAH 36.57/$1 sharply reduced interest in buying non-cash currency through its placement on deposit for at least three months.

The volume of sales of non-cash currency by the population in March, on the contrary, slightly increased – to $153.3 million from $123.1 million in February, returning to the level of January.

As for cash currency, its purchase and sale increased compared to February: purchase – from $1.185 billion to $1.512 billion, sale – from $1.082 billion to $1.235 billion.

On the cash market in April, the hryvnia, after strengthening to UAH 37.2/$1, has now weakened to UAH 38/$1.

Source: www.en.interfax.com.ua