Ukraine’s cbank reveals principle tendencies of foreign exchange market

According to the official information of the Ukraine’s central bank, in April the official exchange rate of Hryvnia against:

dollar US has remained unchanged and as of 30.04.2008 has amounted to 505.00 UAH/100 USD;

EUR has increased by 11.36 kopiykas (1.42 %) and as of 30.04.2008 has amounted to 786.3355 UAH/100 EUR;

Russian Rouble has increased by 0.012 kopiykas (0.55 %) and as of 30.04.2008 has amounted to 2.1356 UAH/10 RUR.

Volume of transactions at the interbank foreign exchange market of Ukraine (purchase and sale in dollar equivalent) - 16 662.5 USD million.

NBU interventions at the foreign exchange market of Ukraine (balance) have equaled - 617.7 USD million (in Dollar equivalent).

Volume of transactions at the cash market of Ukraine (purchase and sale of foreign exchange against Hryvnia in Dollar equivalent) 5 603.9 USD million, including:

- volume of foreign exchange purchased by banks from individuals - 2 736.9 USD million;

- volume of foreign exchange sold to individuals - 2 867.0 USD million.

International reserves, total (operative data) - 33 338.00 USD million.

Natural persons bank deposits in free-converted currency (in Dollar equivalent) have increased by 248.8 USD million and as of 30.04.2008 have amounted to 14122.0 USD million.

 Real effective exchange rate (REER) of Hryvnia

In 2007 the nominal effective exchange rate (NEER) of Hryvnia decreased by 8.1%. Provided that the spread of inflation levels in Ukraine and abroad increased in the second half of the year (+7.5%), the decrease of the real effective exchange rate (REER) of Hryvnia in 2007 amounted to 0.6%.

According to results of March, 2008 the growth rate of REER over December, 2007 amounted to 2.9%. It was caused by the higher level of inflation in Ukraine comparing to other countries - its basic trade partners. Although, the official exchange rate dynamics encouraged decrease of Hryvnia REER, first of all due to its nominal devaluation to Euro (by 4.5%) and to Russian ruble (by 2.6%), but the effect of inflation component turned out to be more ponderable (6.4%).