The National Bank of Ukraine pre-emptively exchanged non-cash foreign currency for cash for banks in order to replenish their tills.
This is stated on the NBU’s website.
Demand for foreign currency proved moderate, so there is a sufficient supply of dollars and euros in the financial system, the regulator said.
The NBU offered banks $50 million and €50 million. Four banks requested replenishment and submitted applications for $40 million and €21.4 million, which the National Bank fully satisfied. Overall, on 3–4 November the NBU offered three times more foreign currency than banks needed.
Thanks to the managed flexibility regime, the hryvnia moves freely and periodically strengthens. The official dollar exchange rate for 5 November fell to UAH 45.5 per $1, while cash dollars at bank tills were sold at UAH 46.4 per $1, the NBU added.
The National Bank added that it will carry out a repeat cash replenishment operation on 5 November as well, so that banks have enough cash for any customer needs. Such exchanges of non-cash funds for cash do not reduce Ukraine’s international reserves, the regulator said.