[ad_1]
At the end of the year, record budget spending is possible, which could lead to an increase in the dollar exchange rate.
Record budget payments at the end of 2020 could seriously affect the exchange rate of the national currency, despite the fact that in December the situation in the foreign exchange market contributed to the strengthening of the hryvnia exchange rate, reports the National Bank of Ukraine in its Financial Stability Report for December 2020.
Thus, in the fourth quarter, the supply and demand balance remained in the market. Due to this, the National Bank did not carry out foreign exchange interventions from November 6 to December 9, a record period since the introduction of the floating exchange rate.
In addition, according to the NBU, non-residents began to return to the country in mid-December, so there was a tendency to offer currency.
“However, in the closing weeks of the year, the probability of record budget spending has increased, which could lead to devaluation pressures in the short term,” the report said.
It should be remembered that the Presidency announced that private entrepreneurs will receive state aid at the end of the year. Up to 50 thousand requests are received daily.
We also previously reported that the NBU considers the 2021 budget too optimistic. With a high degree of probability, the budget will need to be adjusted next year, according to the central bank.
News of Correspondent.net on Telegram. Subscribe to our channel https://t.me/korrespondentnet
