NBU explains reasons for dollar and hryvnia rates fluctuations

The National Bank of Ukraine explained what happened to the dollar and the hryvnia rates this week.

"It's no secret that the NBU is criticized for its lack of long-term resource, and therefore the commercial banks have small opportunities to increase long-term loans to the real sector of the economy. After certain estimates and consultations, the NBU decided that the situation with inflation is normal and we can increase the credit resource up to one year," director of the Department for Monetary Market Analyzing and Forecasting of the National Bank of Ukraine Serhiy Korablin said during a teleconference "Situation in the currency and deposit markets: recent trends and forecasts for the future," ForUm correspondent reported.

The representative of the National Bank said that the first tender for refinancing was held on Friday. 3.8 billion UAH was granted. These funds were given to banks on Monday.

"On Tuesday, we saw that part of the funds was in the foreign exchange market already. We expected this, but of course, we would like to see all the money went into the real economy to increase the loan portfolio of the banking system. However, the part of the money was in the foreign exchange market, the dollar rate rose slightly," he said.

Korablin noted that a similar situation was observed in July and August, but then nobody paid attention to that, perhaps because of Euro 2012 and vacations period.

"Then NBU was actively present in the market. This time we are not going to sit back also and we will enter the market. Foreign exchange and gold reserves exceed $ 30 billion, there is more than enough money to knock down possible excess demand and negative expectations ... We must wait three or four days and I'm sure this excitement settles," he said.