Daily Insight-On FX market and consumer confidence in June; banking sector liquidity still tight

In June, the National Bank of Ukraine (NBU) sold US$1.5bn more currency than it had bought in the interbank market, whereas in May, the balance was the opposite: the NBU bought US$127m more than it sold. As we reported earlier, in June, the NBU\'s official international reserves decreased 0.9%, to US$37.58bn. Local currency depreciated slightly versus the dollar, by 0.02%, in June. The real effective exchange rate of the hryvnia fell 0.3% in May, due to the lower inflation differential in Ukraine compared with its trading partners, and some devaluation of the local currency. This shows that the exchange-rate competitiveness of the country\'s economy remains in place.