Financial news

Trading is not active at the Ukrainian inter-bank foreign exchange market

Trading was not active at the Ukrainian inter-bank foreign exchange market on Monday (in comparison with the previous day), which is caused by limited number of transactions in US dollars, such transactions constituting the major portion of such trading. This is due to day off in the USA commemorating the Memorial day. Insignificant trading activity insured exchange rate fluctuation of euro and Russian rouble against hryvnya within a wider range. Thus, the European currency was traded today within the limits of 7,4070/7,5520, with the majority of transactions having been concluded at the rate of 7,47/7,51.  The Russian rouble was today within the range of about 0,1995/0,2055 but the majority of transactions was concluded within the limits of 0,201/0,203.

The US currency purchase/selling transactions (with the conditions of calculation for the next day) were concluded today within the limits of 4,70/4,80, and their major portion — at 4,74/4,77 per $1. At Tuesday bids, the US dollar exchange rate will remain within the range of 4,70/4,80 and will have a tendency towards the upper limit of this corridor in expectation of the NBU interventions. The same banks which need quick hryvnya, will sell currency at a somewhat decreased exchange rate.

At the DEPO-market, morning improvement of the state of affairs in the afternoon was changed by rates increase on inter-bank credits. It is likely that market participants being incapable to buy and sell the US dollars adequately against the hryvnya have remained today without UAH inflow insured during two previous days by the NBU as a result of currency interventions and which caused significant decrease of the rates on inter-bank credits.

Overnight credits in UAH started today from the marks of 10,0/20,0%, and by the middle of the day  amounted to 12,0/15,0%, but towards the evening rates level increased anew to 16,0/20,0% p.a. Nevertheless, low rates influence was bigger today and as a result average weighted price on concluded transactions by 17:00 KT decreased to 15,9 %, from 17,6% on Friday. The volume of transactions by the same time increased to UAH 2,7 b, from 2,42 b a day earlier. On Friday, registered transactions volume amounted to 3,38 b.

Rates on credits for a period "from 2 to 7 days" though having been decreased still remain at high levels in expectation of report date coming. Today they amounted to 19,0/27,0%, with 22,0/29,0% a day earlier. That is to say, average weighted price on actually concluded transactions decreased to 21,6% from 23,4% on Friday. The volume of concluded transactions reduced to 45 million, from 73 million in previous session.

Rates on credits for a period "from 22 to 31 days" are today at the level of 15,0/25,0% against 17,8/21,0% at the trading on Friday.

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

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