NBU: Blockade of Donbas may affect foreign exchange market

 NBU Deputy Governor Dmytro Sologub has stated this on Inter Channel, NBU's press service reports on its Facebook page.

“Metal products are one of the main components of the country's exports. Last year their share was 40%. Therefore, any changes on this market have a strong effect on economy,” Sologub said.

According to him, Ukraine may lose $2 billion worth of foreign currency earnings due to the blockade of Donbas, although such estimates are rather pessimistic.

“The foreign exchange market situation has recently stabilized, but rapid changes in the volume of foreign currency earnings may affect the market, as it was in August-September 2014 and February 2015, when metal manufacturers suffered from the escalation in military actions. However, the situation has improved since then - today, unlike in February 2015, the National Bank has enough tools and large international reserves to smooth short-run fluctuations on the foreign exchange market,” Sologub noted.

mk