OREANDA-NEWS. Mr Serhii Korablin, Director of Department for Analysis and Forecasting of the Money Market of the National Bank of Ukraine, has said that the net foreign exchange inflows into Ukraine amounted to approximately USD 750 million in March 2014. The positive trend has persisted in April, which has been one of the factors playing a key part in safeguarding the stability of the country's foreign exchange market and the national monetary unit.

According to him, in 2013, the net foreign exchange inflows into Ukraine exceeded USD 9 billion. “It is important that these trends were seen last year, not only as recorded over the entire twelve-month period, but also as recorded in November and December amid the social turmoil. The net foreign exchange earnings of Ukrainian companies are seen as a positive sign, which raises modest optimism over the situation in the foreign exchange market and the exchange rate of the national currency,” said Mr Serhii Korablin, pointing out that it is not so much economic realities as political ones that have a dramatic impact on the foreign exchange market.

The representative of the National Bank of Ukraine also noted that the regulator had taken a number of measures to support of the national currency. The National Bank of Ukraine has raised the discount rate to 9.5% from 6.5% (effective from April 15, 2014). The move is intended to encourage banks to raise interest rates on deposits, which could ultimately lead to an increase in household deposits attracted by banks. Accordingly, this measure will bring down the demand for refinance loans and reduce the possible pressure on the exchange rate of the hryvnia. In addition, the regulator has tightened control of banks' activities and imposed restrictions on the amount of foreign exchange funds that could be withdrawn from deposit accounts until May 1, 2014.

“On May 1, 2014, we expect to hear the decision that the International Monetary Fund will resume the Program of Cooperation with Ukraine, which would allow Ukraine receive financial assistance from other Ukraine's international partners," said Director of Department for Analysis and Forecasting of the Money Market Serhii Korablin.