NBU officials and private bankers assure that the reduction of the country's main bank reserves will not have negative consequences. Since the beginning of 2006, the foreign currency reserves of the National Bank of Ukraine (NBU) have decreased by approximately $500 million. Currently they amount to slightly less than $18 billion, which covers five months of the country's imports, reported NBU Executive Director and member of its board Ihor Shumylo. He explained the increase in demand for currency on the Ukrainian interbank foreign exchange market at the beginning of the year by uncertainty over the gas price and political instability.
Despite this, the country's main bank continues to assure the public that it keeps the situation under careful control. "The NBU maintains sufficient restraint and through its actions demonstrates confidence in the stability of the currency," emphasizes Ihor Shumylo.
NBU First Deputy Chairman Anatoliy Shapovalov supports his subordinate. "Mainly the money went to currency interventions; less than $73 million was directed to payments on external obligations," he explained to "DELO."
According to him, such an amount of decrease was forecast earlier. "Reserves exist precisely to maintain stability in emergency situations," believes the official. Anatoliy Shapovalov believes that today the situation on the interbank foreign exchange market has already stabilized, since supply and demand more or less compensate each other. This happened due to the decline in speculative demand from banks, he is confident. A significant role in the stabilization process was played by the NBU's firm position, which did not sell currency at more than 5.06 hryvnias per dollar.
As for the long-term perspective, everything will depend on the results of the gas negotiations. "If the price of $95 is fixed for the entire year, then in the end we will have a zero balance of payments balance," says Anatoliy Shapovalov. "In any case, with such reserves we will always be able to maintain stability."
The reduction of the National Bank's foreign currency reserves by $500 million did not surprise market participants. "It would be extraordinary if such a change occurred within a week," admits Deputy Head of the Treasury of Nadra Bank Dmytro Reznichenko.
"This volume corresponds to the volume of three trading sessions," emphasizes Deputy Treasurer of BIH-energiya Bank Oleksandr Soboliev. In his opinion, the inflow of American currency was caused by increased activity of exporters after the New Year holidays.
Printed in the newspaper "DELO" No. 62 of January 24, 2006.