The surge in demand for cash currency in Ukraine was recorded on March 10-17, and on March 18-19, for the first time since the beginning of the acute phase of the crisis, the country’s residents handed over more currency to the cashier than they bought, the NBU expert platform reported.
Experts of the National Bank of Ukraine recorded a drop in demand for foreign currency in Ukraine.
The surge in demand for cash currency in Ukraine was recorded on March 10-17, the NBU expert platform reported on Facebook. The expert platform, as stated on its website, – this is Association of National Bank employees who publish analytical and research developments. Platform does not represent NBU official position.
“It was during this period that citizens bought much more foreign currency at the box office than they handed over. This caused a sharp decrease in the hryvnia exchange rate. The peak of purchases occurred on March 10, 11 and 16: these days, Ukrainian banks sold at the box office $ 148 million, $ 114 million, respectively and $ 106 million. Despite the fact that the average daily demand for cash currency this year is $ 64 million, “said NBU experts.
18–On March 19, for the first time since the beginning of the acute phase of the crisis, residents of Ukraine handed over more currency to banks’ cash offices than they bought.
“This explains the fact that the exchange rate in the cash market, which in some places crossed the mark of 29 UAH /$ in the middle of the month, subsequently decreased by about 1 UAH at the selling rate. In general, the cash and interbank exchange rates have converged. ” – the message says.
According to NBU expert platform, with the beginning of the year and until March 19, banks bought back $ 402.5 million more from customers than they sold them ($3.85 billion against $3.45 billion).
The hryvnia exchange rate began to decline on March 10 amid a record drop in world oil prices, as well as panic in the stock markets due to the coronavirus pandemic. Since the beginning of the year, the official hryvnia to dollar rate has fallen by about 3 UAH.
March 20, the National Bank said that the hryvnia for the first time in the past few weeks has strengthened, and the demand for currency from the population fell.
The regulator believes that the main reason for the decline in the value of the Ukrainian national currency is panic.
An outbreak of COVID-19 coronavirus infection began in December 2019 in China. March 11, the World Health Organization announced the spread of coronavirus pandemic. According to the American Johns Hopkins University on March 23, the total number of infected people in the world exceeded 340 thousand, 15 328 people died.
In Ukraine, coronavirus was confirmed in 73 people, three of them died.