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UAH exchange rate spread on interbank, cash markets linked to 'inertness' of latter - NBU

 UAH exchange rate spread on interbank, cash markets linked to 'inertness' of latter - NBUDeputy Head of the National Bank of Ukraine (NBU) Oleh Churiy links the gap between the hryvnia exchange rate on the interbank currency market and cash market with "inertness" of the latter in satisfying splashes of demand.

"Other factors exist on the cash market [compared to the interbank market]. Banks can buy cash and then sell it on the interbank market, but they cannot buy it on the interbank market and then sell on the cash market due to NBU restrictions," he said on the sidelines of the seventh Ukrainian Investment Forum organised by CFA Society Ukraine.

Churiy also said that the similar gap in the exchange rates was seen last year.

"Income from exports of harvest arrived in Ukraine. As we understand some agricultural producers tried to transfer their money into cash. We saw this situation," he said, adding that in spring or summer the producers sold foreign currency creating additional demand.

Churiy said that the future payments to deceived depositors of bank Mykhailivsky would not create large risks for the exchange rate of the national currency.

"At the end of the year we could see another situation – the public usually sells foreign currency to buy gifts or prepare for the New Year," he said.
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