Net sales of dollars by the National Bank of Ukraine (NBU) this week dropped to $530.9 million from $673.3 million a week earlier, according to data on the regulator’s website on Friday.
According to the data, in the first half of this week, for which the central bank has already published data, purchases of foreign currency by bank clients increased from $205.3 million on Monday to $239.6 million on Wednesday.
The official hryvnia exchange rate weakened by only 9 kopecks over the first two days to 37.9247 UAH/$1 on Tuesday, after which it began to strengthen: by 3 kopecks on Wednesday, and then by 19 kopecks and 18 kopecks on Thursday and Friday, respectively. As a result, the official hryvnia exchange rate at the end of the week amounted to 37.5268 UAH/$1.
According to Raiffeisen Bank’s chief dealer Serhiy Zarytsky, the maximum hryvnia appreciation recorded on Friday on the interbank market was 37.5050 UAH/$1, while the dollar peaked at 37.68 UAH/$1.
The banker noted that the trading volume on Bloomberg on Friday increased slightly compared to Thursday: $159 million versus $130 million.
“The NBU, as always, controls the situation and continues to meet the needs of buyers. At present, the NBU’s interventions do not exceed the established volumes of structural demand,” Zarytsky emphasized.
According to his personal estimates, the regulator sold an amount ranging from $120 million to $150 million at the auction.
On Friday, the reference value of the exchange rate set by the National Bank at 12:00 increased by 23 kopecks to 37.5399 UAH/$1.
Since Monday, the hryvnia has strengthened by 0.8%, or 31 kopecks, and by 1.3%, or about 48 kopecks, compared to the exchange rate at the beginning of this year. Its weakening since the National Bank switched to managed flexibility on October 3, 2023, has decreased to 2.6%, or 92 kopecks.
On the cash market on Friday, the hryvnia strengthened by 0.4% to 38.25 UAH/$1, and by 1.6% or 61 kopecks since Monday.
According to the NBU’s monthly surveys, exchange rate expectations for the next year have deteriorated slightly. In particular, in October 2023, banks expected the exchange rate to be 41.16 UAH/$1 in the next 12 months, while the updated January forecast indicates that the hryvnia is expected to devalue by 0.4% to 41.31 UAH/$1. For their part, financial analysts have revised their forecast a little more significantly: they expect the hryvnia to depreciate by 0.5% to 40.29 UAH/$1 in December 2023, compared to their previous forecast.
As reported, in December, the NBU’s net sales increased to about $3.57 billion from $2.46 billion in November, $3.34 billion in October, and $2.69 billion in September. Last month, the Ministry of Finance attracted $5 billion in external financing, which increased international reserves by 4.4% in December to $40 billion 507.9 million, the second highest level in history after July 2023.
The meeting between Ukrainian Prime Minister Denys Shmyhal and Slovak Prime Minister Robert Fico will take place on Wednesday, January 24, in Uzhhorod, Slovak media outlet Denník N reported on Saturday.
“…on Wednesday morning, I am in Ukraine with Shmyhal,” Fico said, speaking about his work plans for the coming week.
The publication reports that “Fico will meet with the Prime Minister of Ukraine in Uzhhorod.”
As noted, in early December, Fico already had a telephone conversation with his Ukrainian counterpart. He summarized the content of the phone call in his Facebook status, saying that he “makes it impossible to supply weapons” but “supports the European perspective of Ukraine and Moldova, but together with the countries of the Western Balkans.” Fico also stated that Slovakia is interested in “helping Ukraine in the humanitarian and civilian sphere.”
Fico also reportedly noted the reluctance of the Ukrainian side to hold a press conference.
Last week, it was reported that Ukrainian Prime Minister Shmyhal also announced a meeting with Slovak Prime Minister Fico in the coming weeks to “discuss all the pressing issues and remove possible obstacles to the implementation of the Ukraine Facility.”
Forecast of dynamics of changes in Ukrainian GDP in % for 2022-2025 in relation to previous period
Source: Open4Business.com.ua and experts.news
In 2023, Ukrainian companies increased imports of copper and copper products by 2.2 times in value compared to 2022, to $140.795 million.
According to customs statistics released by the State Customs Service of Ukraine, exports of copper and copper products decreased by 20.1% to $72.078 million during this period.
In December, the company imported copper worth $20.856 million and exported $6.906 million.
In addition, in 2023, Ukraine reduced imports of nickel and products by 74.2% compared to 2022, to $15.391 million ($1.025 million in December), and increased imports of aluminum and aluminum products by 7.7%, to $366.463 million ($31.951 million).
At the same time, it reduced imports of lead and lead products by 65.2% to $989 thousand ($70 thousand), imports of tin and tin products by 23% to $2.728 million ($310 thousand), but increased imports of zinc and zinc products by 18.8% to $45.966 million ($3.665 million).
Exports of aluminum and aluminum products last year increased by 0.7% compared to 2022 to $97.616 million ($8.433 million in December), lead and lead products increased by 23.5% to $14.778 million ($704 thousand), nickel and nickel products amounted to $532 thousand ($24 thousand), while in 2022 it was $1.268 million.
Zinc was exported abroad in 2023 for $130 thousand ($13 thousand in December) against $1.331 million in 2022. Exports of tin and tin products amounted to $159 thousand (up $79 thousand in December) against $424 thousand in 2022.
As reported, in 2022, Ukrainian enterprises reduced imports of copper and copper products in value terms by 64.3% compared to the previous year to $65.370 million, while their exports decreased by 56.3% to $90.245 million.
In addition, in 2022, Ukraine reduced imports of nickel and nickel products by 49.9% compared to 2021, to $59.754 million, and aluminum and aluminum products by 33.4%, to $340.398 million. At the same time, it reduced imports of lead and lead products by 66.6%, to $2.839 million.
Imports of tin and tin products fell by 33.5% to $3.312 million, and imports of zinc and zinc products decreased by 58.7% to $38.690 million.
In 2022, exports of aluminum and aluminum products decreased by 42.7% compared to 2021, to $96.972 million, lead and lead products – by 68.7%, to $11.970 million, and nickel and nickel products – by 73.9%, to $1.268 million.
Zinc exports in 2022 amounted to $1.331 million, while in 2021 they amounted to $550 thousand. Exports of tin and products in 2022 amounted to $424 thousand, compared to $346 thousand in the previous year.
Real GDP in 2021-2025 (forecast)
Source: Open4Business.com.ua and experts.news
Corteva Agriscience, an international research and development agricultural company, increased corn seed exports by 50% in 2023 compared to the previous year, its press service reports.
According to the press release, during 2023, the company’s seed production complex in Poltava region shipped more than half a million sowing units of Pioneer® corn seeds, which was a record volume for the 10 years of Corteva’s production in Ukraine.
“Russia’s actions against Ukraine’s agricultural sector prove its outstanding role in ensuring food security in many regions of the world. Corteva considers Ukraine to be one of the largest players in the global agricultural market and in recent years has been consistently increasing production and export of high-quality hybrid corn and sunflower seeds to ensure the ability to produce agricultural products in Ukraine and in those countries where farmers depend on seeds produced in our country,” said Oleksiy Turchynov, Head of Seed Production at Corteva Agriculture in Ukraine.
The company also said that it intends to continue developing the production capacity of the seed complex to increase seed exports through established sales channels to the European Union. To this end, the company has reconfigured its export chains and in 2023, farmers in Europe (Austria, France, Hungary, Romania, Slovakia, Bulgaria, Belgium, Czech Republic, Germany, Lithuania, Poland, Serbia) and Central Asia received Ukrainian corn seeds of the Pioneer® brand.
As reported, the company’s seed complex in Poltava region was officially opened in June 2013. More than $56 million was invested in its construction. The annual capacity of the plant is about 500 thousand sowing units of corn seeds and 250 thousand sowing units of sunflower seeds.
Corteva Agriculture is a global agricultural company. It offers comprehensive solutions to maximize yields and profitability. It has more than 150 research facilities and more than 65 active ingredients in its portfolio.
The company’s presence in Ukraine includes the headquarters in Kyiv, a research center in Liubarky (Kyiv region) and a seed production complex in Stasi (Poltava region).
In April 2022, the company decided to leave the Russian market due to the full-scale war against Ukraine unleashed by Russia.
