OREANDA-NEWS. On 24 March 2009 was announced, that the NBU sold USD 38mn to 54 commercial banks, aimed at the foreign currency loans repayment of their retail clients. This resulted in a slight revaluation of hryvnia from mid UAH/USD 8.4 on 19 March to UAH/USD 8.36 on 20 March 2009.

Millennium Capital sees that the NBU’s foreign currency auctions have an evident effect on the interbank exchange rate. This is related to low foreign exchange supply and a steady demand on the interbank market. Meanwhile, the limited nature of the NBU’s international reserves and no guarantee to held next foreign exchange auctions, lead to some volatility on the interbank foreign exchange market. Namely, no NBU’s announcement on the next auction conduction, made hryvnia to rise from UAH/USD 8.15 to UAH/USD 8.4 through Monday -Thursday. Millennium Capital believes that the NBU will hold its next auction on 27 March, which will enable the retail clients of the banks to repay the majority of their obligation due in March (estimated at USD 200mn) and favour the exchange rate relative stability.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.