Trump’s victory will have little impact on Ukrainian market

10.11.2016

The situation on foreign markets with victory of Republican candidate Donald Trump will not have a big impact on Ukraine’s currency market, the National Bank of Ukraine (NBU) press service has reported.

“The situation on foreign markets after publication of the election outcome in the United States could have a restricted influence on the state of the Ukrainian currency market. We expect that inflow of currency revenue from grain and sunflower oil exports will remain the key factory determining the state of the Ukrainian interbank currency market by the end of this year,” Deputy NBU Governor Oleh Churiy said.

He said that from the middle of September extra supply of foreign currency has been seen on the Ukrainian currency market thanks to large currency revenue from exports of the new harvest.

“This even allowed the NBU to buy currency, expand forex reserves without hampering the exchange rate trend,” he said.

Churiy said that large turbulence on the global financial markets the same as with Brexit earlier this year could indirectly influence the Ukrainian economy via the global commodities markets.

“We believe that oil prices would react to the election outcome in the United States most of all. Grain, sunflower oil and metal prices – the key goods Ukraine exporting – would less react and later recover this,” Churiy said.

The NBU does not expect large volatility of the hryvnia exchange rate that would create large risks for inflation in Ukraine being beyond the targets – 12% (plus or minus 3%) for 2016 and 8% (plus or minus 2%) for 2017.


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