In September 2023, Ukrainians significantly increased their purchases of foreign currency in cash, leading to a record volume of transactions. Compared to August, the net volume of foreign currency purchases by the public rose by 64%.
According to data from the National Bank of Ukraine and analysts, in September, the public purchased $584 million in non-cash foreign currency while selling $403 million worth. The net volume of non-cash foreign currency purchases amounted to $181 million.
Ukrainians purchased $2.087 billion in cash foreign currency and sold $1.347 billion, resulting in a net purchase of $740 million in cash foreign currency. For comparison, the lowest monthly net foreign currency purchase volume in 2023 was recorded in May and amounted to $231 million.
Experts believe that the rise in demand for foreign currency is linked to the public’s desire to build a “financial cushion for a rainy day.” At the same time, they do not foresee a collapse of the hryvnia, despite the increase in foreign currency purchases.
One of the reasons for the surge in foreign currency purchases was the government’s announcement of a shortfall of at least $27 billion to cover budgetary needs. The European Union also links further funding to Ukraine’s fulfillment of certain conditions and reforms.
