The hryvnia exchange rate, after weakening at the end of March, will strengthen in the second quarter due to increased sales of foreign currency by farmers before the start of field work, the majority of bankers polled by Interfax-Ukraine are inclined to this opinion.
“In the near future, the hryvnia will receive support from the sale of foreign currency by farmers for the spring field work, which is likely to lead to a slight strengthening of the national currency,” head of the analytical department of Alfa-Bank Oleksiy Blinov said.
In his opinion, the most probable range of exchange rate fluctuations in the second quarter is the range of UAH 27-28/$1, with a moderate vector of movement towards temporary strengthening.
Blinov added that, despite the uncertainty about the prospects for quarantine, the factor of their strengthening is unlikely to become the determining driver of the Ukrainian foreign exchange market in the second quarter.
His opinion is shared by the chief manager for macroeconomic analysis of Raiffeisen Bank Aval, Serhiy Kolodiy, who expects the seasonal strengthening of the hryvnia in the second quarter to UAH 27.0-27.5/$1 and predicts that, if possible, the NBU will try to replenish its reserves by buying out excess foreign currency supply.
“An additional positive background for the hryvnia can be created by active negotiations with the IMF regarding the first review of the current SBA program and the acceleration of the still rather slow rate of vaccination of the population,” the analyst noted.
A similar opinion was expressed by the director of the risk management department of Accordbank, Mykola Voitkiv, who predicts the revaluation of the hryvnia exchange rate with the prospect of strengthening to UAH 27.00/$1.
“Taking into account the continued high prices for the main commodity items of Ukrainian exports, the beginning of the sowing campaign (a seasonal factor in the increase in foreign currency sales on the part of agribusiness), the presence of interest in investing in government bonds from non-residents, I do not expect the rate to rise above UAH 28/$1,” he said.
In addition, the tightening of quarantine measures and low rates of vaccination in Ukraine limit the recovery of demand for currency both from the population (tourist trips) and business, especially in the field of trade, the banker noted.
Map of internet coverings of ukrainian basic mobile operators in Jan 2021.
National bank of Ukraine’s official rates as of 02/04/21
Source: National Bank of Ukraine
On the occasion of its first flight to Ukraine 30 years ago, the Austrian Airlines announced the launch of flights from Vienna to Zaporizhia from May 17 with a frequency of three times a week (round trip).
The press service of the Ministry of Infrastructure of Ukraine said on Thursday that during the summer the company plans to increase the number of flights to daily.
It is noted that the flights will be operated on Mondays, Wednesdays and Fridays from Vienna to Zaporizhia at 10:35 local time, and from Zaporizhia at 14:30.
At the same time, the airline will no longer offer the Vienna – Dnipro route due to its proximity to Zaporizhia.
“The development of regional airports and aviation remains our priority for the coming years. Over time, the pre-quarantined air traffic will recover, and we are preparing our airfields for active work. I am glad that one of the leading European airlines, Austrian Airlines, which is part of the Lufthansa concern, is opening a new flight in Zaporizhia. Kyiv, Lviv and Odesa are already included in the program. I am grateful to the local authorities of Zaporizhia and the airport management for the well-coordinated and fruitful work, and I wish the pilots and future passengers a cloudless sky and successful flights,” the press service quoted Minister of Infrastructure Vladyslav Krykliy as saying.
There are currently no direct flights on the Vienna – Zaporizhia – Vienna route.