Financial news

Foreign exchange market review. 3 December, 2007

At Ukrainian interbank foreign exchange market demand and offer on US dollars keep balancing higher than 5,06/$1 against background of high demand and NBU decision not to renew currency interventions due to sufficient currency offer.

Today bids were performed at the range 5,058/5,070 at 5,04/5,07 a day before, when demand growth did not have proper offer that caused USD quotations growth higher of upper scope of exchange range -5,06/$1, within National Bank held American currency for a long time.

Today NBU representatives said that market has sufficient quantity of currency to cover demand on it, and there is no need to renew dollars sale within currency investments, which for the last time took place in April with exchange rate 5,06.

In fact, pressure on behalf of demand subsided now, and exchange rate was "lowered" a little bit from tops that it reached at the last day of autumn.

Majority f deals was concluded today by banks at the range 5,060/5,065 at 5,062/5,067 per $1 on bids on Friday, and bids were closed at the level 5,060/5,065 at 5,063/5,070 during previous session.

NBU did not participate in bids today, however it keeps supervising situation at interbank market.

At DEPO-market stabilization of situation is observed with the beginning of new month.

«Overnight» credit rates, which grew up at bid on Friday, by this time today demonstrate reduction almost 2 times. The rate decreased by 1,5/3,0% by evening from 2,5/5,0 at the session opening and 3,0/10,0 on previous session. Major part of bargains was concluded today in the range 2,0/4,0% while 4,0/7,0% a day before. Average weighted «overnight» rate by 17-00KT made up 3,0% against 5,2% according to Friday results. Concluded bargains volume by this time made up UAH 1,77 bln. while 2,97 bln. on Friday.

Price of credits for the term «from 2 up to 7 days» decreased by 3,1/5,5% from 6,0/10,3% on previous day. thus, average price on concluded bargains decreased by 4,6% from 7,2 on Friday. Concluded bargains volume increased by 318 mln. from 236 mln. on Friday.

Trade range on credits for the term «from 22 up to 31 day» makes up 10,0/12,0 while 10,0/13,0% on previous session.

Comments of KRAMAROVA S. N., Head of Treasury of «PRAVEX-BANK»

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