NBU notes three-fold decline in public demand for foreign currency

The National Bank of Ukraine states that the public demand for foreign currency has decreased by 2.7 times over the last week and a half.

"According to our data, net demand for foreign cash currency since mid-November has been steadily declining. Over the last week and a half, it has already fallen by 2.7 times, going back to the June level. I do not rule out that if such dynamics preserves, we'll need to buy currency," the NBU head Serhiy Arbuzov said in the interview with the Expert weekly.

However, he denied that the norm on the compulsory sale of 50% of foreign currency earnings by exporters may lead to the opposite effect, namely, the cessation of the influx of currency in Ukraine.
"I do not be afraid of this, and there are good reasons for my not being afraid. Compulsory sale of foreign currency earnings is a well-known tool for advancing the rhythmic flow of currency on the domestic market. It is usually used under the temporary worsening of balance of payments. This tool is not new for Ukraine," Arbuzov said.

The NBU head stressed that the countries with higher sovereign ratings than Ukraine are actively using the on mandatory sale of foreign currency earnings by exporters.