The National Bank of Ukraine closely monitors the situation in the FX market and will be able to prevent turbulence  in the FX market. The NBU is equipped with a whole set of instruments to smooth out excessive exchange rate volatility triggered by temporary factors.

During the year, the NBU was involved in efforts to replenish and build up  international reserves to accumulate sufficient buffers to address heightened FX market volatility and calm the market. The NBU’s net FX purchases have reached over USD 1.7 billion since the beginning of the year.   As a result, Ukraine’s international reserves currently amount to USD 15.4 billion. This amount is  not only to sufficient for the NBU to intervene in the FX market by selling foreign currency but also enable the  NBU and the Government to settle their foreign debt obligations. 

Today, on 20 December 2016, in response to demand and supply mismatches in the interbank FX market that exerted depreciation pressure  on the  hryvnia exchange rate, the NBU held FX sale auction. Bids worth  USD 28.4 million submitted by market participants were satisfied through this currency intervention. Market participants submitted bids for a total of USD 37.9 million. Thus, 62% of the total amount of bids was satisfied at the floor auction rate.  The cut-off rate stood at 26.45 UAH/USD The ceiling auction rate stood at UAH 26.50 per USD 1, whereas the floor rate stood UAH 26.45 per USD 1.  The weighted average exchange rate stood at USD 26.46 per USD 1.