The National Bank of Ukraine (NBU) sold almost $6 billion in October, but the hryvnia hit a new low

According to the National Bank of Ukraine (NBU), in October the National Bank sold almost $6 billion to meet currency demand, but the hryvnia continued to fall; the official dollar rate set a new historical high five times, the NBU explain.

Dollar exchange rate and intervention volumes in October

The strongest pressure on the hryvnia came at the end of October: over the week the official dollar rate rose from 45.05 to a record 45.60 hryvnia (28 October). After that the hryvnia partially recovered — by 2 November the NBU set the rate at 45.3526 hryvnia per dollar.

currency exchange board and dollars held in hands

Over the week NBU interventions reached $1.82 billion — the largest weekly figure on record, $625 million higher than the previous week. In total, in October the regulator sold almost $6 billion on the interbank market, which was also a monthly record. On the cash market the dollar rose by about one hryvnia over the week — to 46.30 hryvnia in buy and 46.57 hryvnia in sell.

Reasons for pressure on the hryvnia and demand volumes

Deputy Governor Yuriy Heletiy said at a briefing on 29 October that the pressure on the hryvnia was due to rising budget expenditures, which increase overall demand for foreign currency, and a reduction in supply from the agro-industrial sector and metallurgy because of logistics disruptions. According to Heletiy, the average daily net demand on the cashless foreign exchange market in October was $182 million.

In the first two decades of the month the average daily demand was $172 million, while in the last five trading days it rose to $230 million. In the first four days of the final trading week the negative balance of foreign exchange operations by legal entities exceeded $200 million per day, and on Wednesday reached $260 million. For January–October client demand for foreign currency rose by at least 25%, or roughly $16 billion, while supply increased by only $2 billion; export proceeds rose from $36 billion to $38 billion.

NBU reserves and the cost of hryvnia resources

At the start of October international reserves amounted to $47.1 billion. “According to Yuriy Heletiy, this is enough for roughly four months of future imports.” According to the NBU chart, gross reserves were about $57−58 billion at the start of 2026 and fell to roughly $47 billion by the end of September; net reserves decreased approximately from $43−44 billion to $32−33 billion.

dollar and hryvnia banknotes on the exchange counter

In the banking system the rate on overnight deposit certificates rose from 15% in the first half of the year to 16.5% per annum, while overnight loan rates increased from 19% to 20.5%. The interbank rate index UONIA rose from roughly 15% to 16%. The balance of the NBU’s deposit certificates stands at 723 billion hryvnia, of which 565.5 billion hryvnia are overnight instruments; in October the volume of funds attracted by the NBU from banks mostly fluctuated between 420−600 billion hryvnia per day.

At the start of 30 October banks’ correspondent accounts held 489.8 billion hryvnia, 213 billion hryvnia more than the day before — banks received back 565.5 billion hryvnia on overnights and placed new certificates totalling 341.9 billion hryvnia. On the yield curve of hryvnia domestic government bonds (OVDP) as of 2 November the highest yield was about 15.8% at tenors of around one year, while on the six–seven year horizon yields fell to 11%. The official euro rate as of 2 November was 50.6843 hryvnia; a year ago it was about 48.5 hryvnia.

Oleksii Liubatskyi

Oleksii Liubatskyi

Editor-in-Chief

Editor-in-Chief of Concord Fintech, responsible for editorial policy, technical development and publication quality. With experience in web development, server administration and SEO, he makes sure financial news, exchange rates and bank directories update quickly and read well on any device.

All author's materials (908)

Leave a reply