After the currency exchange rate rose, banks received $94 million and €30 million in cash from the NBU in three days

The National Bank of Ukraine transferred $94 million and €30 million in cash to commercial banks in exchange for non-cash foreign currency between November 3 and 5. Such operations are carried out to provide bank cash desks with the necessary amount of cash against the backdrop of exchange rate fluctuations.

According to the regulator, on November 5, four banks received $40 million and €9 million in cash.

On that day, the NBU offered banking institutions $50 million and €50 million each. At the same time, the actual demand turned out to be lower than the proposed volumes.

The National Bank satisfied all the banks’ applications in full.

Is there enough cash currency in Ukraine

The National Bank assures that the situation on the cash foreign currency market remains under control.

Despite the growth of the dollar and euro exchange rate, the regulator assesses banks’ demand for cash foreign currency as moderate.

According to the results of the operations conducted from November 3 to 5, the total amount of currency offered significantly exceeded the actual needs of banking institutions.

The NBU emphasizes that the financial system has a sufficient supply of cash foreign currency to meet the needs of the population.

If necessary, the regulator is ready to conduct additional operations to reinforce bank cash desks.

Do such operations affect international reserves

The National Bank separately explained that the exchange of non-cash foreign currency for cash does not lead to a reduction in Ukraine’s international reserves.

These are operations during which banks receive physical banknotes in exchange for the corresponding amounts of non-cash currency.

Thus, the regulator ensures the availability of cash dollars and euros without an additional burden on international reserves.

Recall that on November 4, the National Bank also provided banks with $40 million and €21.4 million in cash.

Therefore, despite exchange rate fluctuations, the NBU does not record a deficit of cash foreign currency and declares its readiness to promptly provide banks with the necessary volumes of dollars and euros.