Financial news

American currency strengthened its positions at Ukrainian inter-bank foreign exchange market

Today at Ukrainian inter-bank foreign exchange market American currency strengthened its positions for about 30 kopecks, having returned lost positions of 5 previous sessions. The reason for such considerable USD increase was UAH official rate strengthening by the National Bank by the level 4,85 from 5,05/$1, that was unchangeable since April 2005. After that the NBU announced its readiness to buy back redundant USD offer at inter-bank market with rate 4,80/$1, then USD rate increased within 4,70/4,80, when since the beginning of the day it decreased by 4,48/4,53 per $1 against 4,54/4,57 while bids opening on Wednesday.

During day bids were performed at the range 4,70/4,80, as market participants were not sure that the NBU renews USD purchase exactly today. Besides the NBU while currency interventions performance works within set banks limits that was confirmed today, and offer at this level is probably higher. That is why to minimize its risks banks had to sell part of currency with the rate that is slightly lower than announced one by the National Bank

Majority of bargains was concluded today by market participants within 4,72/4,78, with 4,56/4,60 per $1 a day before. And an hour before closure of trade session the National Bank entered the inter-bank market with USD purchase with rate 4,80/$1, having redeemed promise of the morning though there was demand at the market at 4,60/4,70.

It is likely that the NBU renewed interventions to make UAH against USD market rate official as its representatives considered current market rate with 4,5-4,6 level to be "very overstated".  

At DEPO-market there is situation when "heavy clouds hung over UAH liquidity, gradually move to American dollar". Morning message about the NBU readiness to renew currency buy-out at inter-bank market was accepted by market participants as good sign symbolizing additional UAH liquidity intake to the market that caused decrease of credit rates in national currency from earlier reached maximum levels. However as a result of USD sale to the National Bank those in the access are not so much at inter-bank market, inter-bank in dollars became considerably more expensive in comparison with yesterday's day.

During the first half of a day "overnight" in UAH fluctuated today within 25,0/35,0%, with 16,0/23,0% in the evening and 24,0/35,0% p.a. previous day. Average weighted price on concluded bargains at 17:00 КТ decreased by 24,9%, from 28,2% on Wednesday. Volume of bargains for this time was practically unchangeable — at the level about 1,95 b in comparison with yesterday's day, but in comparison with level of closure of yesterday's session at the level 2,88 b it decreased.

Rates on credits for the term "from 2 to 7 days" fluctuate today within 21,0/26,0%, with 24,0/27,5% yesterday. Due to this fact average weighted price on actually performed bargains decreased as well and constituted 21,1-24,0%, with 26,3% on Wednesday. Volumes of concluded bargains decreased by 94 m, from 400 m a day before.

Rates on credits for the term "from 22 to 31 days" are at the level 25,7/35,0%, with 22,5% p.a. at bids on Wednesday.

"Overnight" credits in USD became more expensive by 6,0/10,0% from 3,5/5,5%, fixed yesterday and during the first half of today's day.

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

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