In Ukraine, the exchange rate is fully controlled by the National Bank of Ukraine, but the record volumes of buying and selling currency in July this year have attracted the attention of experts. July 2024 became a record for the last 12 years in terms of the volume of currency transactions, which creates a need for fresh advice on buying and selling currency.
The July record and its consequences
The head of the Secretariat of the Council of Entrepreneurs under the Cabinet of Ministers, economist Andriy Zablovsky, in a comment to TSN noted that in July, individuals sold currencies for $1.658 billion and bought for $2.275 billion. Net purchases amounted to $1.117 billion, which is $145 million more than in June. Zablovsky expressed doubts about the feasibility of such operations, since the exchange rate was growing in August, which could lead to losses for those who bought currency in July.
Investment advice: OVDP vs. hryvnia deposits
Member of the Economic Discussion Club Oleg Pendzin advises to focus on investments in hryvnia bonds of the domestic state loan (OVDP). According to him, the bonds are more profitable than hryvnia deposits, which have limited interest. The profitability of OVDP varies from 13% per annum for securities with a maturity of 4 months to 16% for securities with a maturity in 2026. Pendzin also emphasized that the profit from OVDP is not taxed, although a new military levy may appear, which will increase the tax burden.
Currency forecast for the coming week
Financial analyst Andriy Shevchyshyn believes that the best time to buy currency was the end of July, when the dollar fell in price. At the same time, experts predict that this week the dollar exchange rate in Ukraine will not exceed 42 hryvnias. The exchange rate fluctuations may be insignificant, but analysts expect that the currency will not remain stable.
