In April 2016, the National Bank of Ukraine purchased USD 676.0 million to smooth excessive exchange rate fluctuations on the FX market and replenish international reserves. In  particular, 13 FX auctions  were held in April, through which USD 528.6 million was purchased by the NBU.  During the last week of the month alone, the NBU held 4 FX auctions, through which it purchased USD 275.1 million.   Another USD 147.4 million was purchased by the NBU though FX intervention conducted on 7 April 2016.

An excess of foreign exchange supply over demand reflecting enabled the National Bank to purchase foreign currency. The recovery of global commodity prices led to an increase in foreign exchange proceeds from exports.   In particular, steel prices rose by 16% y-o-y, whereas prices for iron ore went up by 6% y-o-y.

Transactions involving the purchase of foreign currency target certain exchange rate levels do not point to the fact that the NBU targets certain exchange rate levels. The NBU remains committed to a flexible exchange rate regime while smoothing exchange rate fluctuations. However, the regulator does not prevent the exchange rate from moving in either direction if exchange rate movements are triggered by fundamental market factors. This is evidenced by the fact that the official UAH/USD exchange rate appreciated by 3.9% to UAH 25.19 per USD 1 despite NBU FX purchases.