Demand for the dollar is growing. What is happening in the foreign exchange market
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Under the influence of an increase in net demand for foreign currency from bank clients on the interbank foreign exchange market, the National Bank last week increased the net sale of foreign currency from reserves to balance the market to $778 million compared to $664 million a week earlier. Ex-Chairman of the NBU Council Bohdan Danylyshyn wrote about this on Facebook.
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The situation on the currency market
According to Danylyshyn, the prevailing demand for foreign currency is due to the expansion of the deficit in foreign trade in goods and services, which in 2022 amounted to about $24 billion (including almost $4 billion in December). At the same time, the overall surplus of the current account in 2022 at the level of $8.6 billion was supported by constant receipts of transfers from abroad (primarily for wages — $13.5 billion) and receipts of international financial aid transfers (almost $26 billion).
Activity of international investors
At the same time, as Danylyshyn noted, the investment activity of international investors remains low.
Thus, in 2022, foreign direct investment inflows to Ukraine amounted to only $0.6 billion and were provided by reinvested income of foreign investors ($655 million) and new direct investments in Ukrainian enterprises ($525 million), which made it possible to compensate for the reduction of indebtedness of Ukrainian enterprises to non-resident direct investors (-$608 million).
Read also: The dollar and the euro this week: will the rate of the euro currency stabilize for a long time Reminder
During the week from January 30 to February 3, 2023, the National Bank bought $5.05 million and sold $782.57 million on the interbank foreign exchange market. The negative balance of interventions amounted to $777.52 million.
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
- Dollar
- Currency
Source: Ministry of Finance
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