By KYIV. Nov 21 (Interfax-Ukraine) – The transition from October 3 from a fixed exchange rate regime to a regime of its controlled flexibility had little effect on payments with cards of Ukrainian banks abroad: the average daily write-off of bank currency in settlements with international payment systems (IPS) amounted to $41 million in October compared to $37 million in September and $40-42 million in August-June, the NBU reports.
“The demand for FX currency for settlements with IPS in October increased only marginally,” says the presentation of the National Bank of Ukraine on the country’s foreign exchange market.
According to it, FX currency receipts through funds transfer systems in October decreased to $8 million per day from $9 million per day in September-August and $10-11 million in the previous months of this year.
In general, as the NBU notes, the average daily balance of settlements between banks and their clients with payment systems in foreign currency decreased this year to $38 million from $71 million last year, in particular, since the summer it has fluctuated between $28-32 million, which is half as much than in January-February.
“The balance of settlements on card transactions has decreased since March 2023 due to activities in the field of gambling and transactions with crypto assets and remains at the level of $31-33 million/day,” the NBU stated.
The National Bank added that the volume of settlements with IPS remains relatively stable, which reflects the gradual transition of Ukrainian migrants to receiving income from sources in the host country on cards issued by banks in the host countries.
The NBU noted that in October, amid nervousness, the volume of FX currency purchases by banks increased to an average of almost $20 million per day, which was due to their sale of cash currency, whereas in previous months they fluctuated around $10 million per day and below, and in 2022, when the cash market was limited for a significant time, averaged $4 million.
In general, according to the NBU presentation, in 2023, in the structure of total demand for non-cash currency (taking into account government transactions through banks), the share of customer demand increased noticeably, to 81%, or $236 million per day from 68%, or $205 million in 2022. However, the share of foreign currency purchases for bank settlements with IPS (as a result of transactions with cards of Ukrainian banks abroad) decreased to 13%, or $38 million from 23%, or 70%.
The share of banks’ own operations in the structure of demand for foreign currency increased to 6% from 4%, and in absolute terms – to $16 million from $13 million, while purchases of foreign currency by the National Bank fell to 0.3%, or $1 million from 4%, or $12 million.
In the structure of supply, sales by clients increased to 64%, or $187 million from 62%, or $186 million, while sales by the National Bank decreased to 36%, or $104 million from 38%, or $115 million.
