The dollar will fall sharply: what you need to know Ukrainians

Курс доллара резко упадет: что надо знать украинцам

A record rate in Ukraine

Dollar exchange rate on 5 July fell to 25.87 UAH/$, the last time the American currency fell below this mark in August 2018. The record for a year and a half managed to beat due to a number of factors. So, from January 1, 2019, the hryvnia strengthened to 1.8 UAH/$. While in the cash market the dollar sold for 25,83 UAH/$.

Senior analyst “Alpari” Vadim Iosub I am sure that next week the dollar will fall, having confidently overcome a psychological mark. “Next week we expect the decline in the dollar against the hryvnia. The dollar on the interbank market can be traded in a week is about 25.6 per UAH, and the cash dollar in banks can trade at up to 25.6/25,9 UAH”, – predicts expert.

As noted by Iosup, from 21 June to 2 July, the dollar on the interbank market traded in a very narrow range of 26.1-26.2 UAH when all signs of excess supply of foreign currency over demand for it. “Obviously, all the excess supply was bought by NBU that did not allow the dollar to fall. On Wednesday, July 3 the national Bank slightly loosened his grip, and the dollar immediately “dived” below 26 UAH. If the NBU will not increase the magnitude of currency purchase on the market, the hryvnia has all chances to continue strengthening”, – says the expert.

With such predictions agrees financial analyst Egor com. He believes that the value of the currency will fluctuate around the level at 25.9 26.1 per UAH/$. Thus, according to Komov, the most likely scenario for significant depreciation of the dollar in all segments of the market. In fact, the dollar has all chances to go below 26,0 UAH/$.

“On the interbank market recorded the highest in almost two years the dollar. In the foreign exchange market seeing a decline almost to the values of August 2018. Given the possible risk of devaluation in September, I can assume that it is now testing the lowest this year level”, – predicts com.

Vladimir Mazurenko also thinks that mid-July is the best time for the hryvnia exchange rate. Seasonal factors that contributed to the strengthening of the hryvnia, gradually lose their influence on the market. However, until August, and at least until the second mid-July, the devaluation trend, according to the analyst, will continue.

“Now we see an extremely favorable situation for the buying dollar. Interestingly, for some reason the Ukrainians, when the dollar decreases due to objective reasons, the demand of the population falls. But when the dollar becomes more expensive – on the contrary. I think will test the mark of 26 UAH/$ from below. Therefore, no major fluctuations, especially the rise in the us dollar should not be expected”, – says Mazurenko.

How to buy foreign currency

There are three basic rules, how to buy foreign currency. It is important to define the goal.

If you put on a specific purchase. In this case the right to collect in the currency in which you spend money. For example, if you save for a trip to Rome, it is best to buy euros. If you are planning to buy a car, the price is fixed in dollars, it is best to save the American currency.

If you save for a rainy day. In this case, you need to buy three different currencies. For example, dollars, euros and yuan. This basket will diversify (split) risks. This is the main principle.

Also you can’t buy the money immediately. This is best done in small portions once a month. While most of the money needed to buy closer to the summer, and by the end of the year, when the rate traditionally increases, the volume of purchases can be reduced.

Where is the best to buy dollars

There are legal ways to acquire foreign currency: at a Bank in the exchanger and using mobile banking application. The most risky method – exchangers. The fact that hundreds of such items are operating illegally. So before you make a deal, you should check the license for foreign exchange transactions.

But if no license, then there is no control. In such an exchanger may sell fake and next day disappear. It is also important that after such operations were provided receipts.