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 "No reason for panic," - National Bank head calls not to create excessive demand for foreign currency

Head of the National Bank of Ukraine Valeria Hontarieva states there is no ground for panic in the currency market.

Censor.NET reports citing Interfax-Ukraine.

"There is no reason for panic," she told reporters in Davos on Friday.

Read more: Euro official exchange rate jumps to UAH 27/€1

However, Hontarieva noted that the National Bank is responsible only for the white market - the market of banking institutions licensed by the NBU. The cash foreign exchange market is always slightly higher than the interbank one. The interbank market is the main exchange rate formation mechanism of the country and it is independent since it is no longer regulated," she said.

At the same time, according to the head of the National Bank of Ukraine, there are still additional factors on the cash foreign exchange market that can affect the rate. "First of all, it is panic among the population and the demand related to it. Second, it is the supply of excess liquidity, which can appear due to social payments. And the third - we have just had a season with a lot of non-cash transactions made during the holidays - this is a seasonal factor," Hontareva explained.

Read more: Dollar soared to UAH 26.7/$1, euro exceeds UAH 29/€1

She added that significant social benefits were carried out at the end of the year, namely in the amount of about 30 bn hryvnia (about $1.2 bn), which also affected the situation in this sphere. "The main problem is the excessive demand and panic. Therefore, I ask everyone to calm down, I ask everyone to comprehend what we are currently working in Davos at," the NBU head said.

 
 
 
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