Revaluation

Revaluation - the official currency appreciation relative to foreign ones. It is beneficial for importers and creditors, and disadvantageous to exporters and borrowers. Therefore, currency appreciation stimulates the outflow of capital abroad. In Ukraine since independence almost revaluation was not done. Civilized and efficient way to exchange rate changes are the foreign exchange intervention - buying or selling of foreign currency by central banks. Directs these processes exchange department of the National Bank of Ukraine, where every morning the information comes from commercial banks, our state of supply and demand for hryvnia and foreign currencies. If in the process of analyzing these data, it appears that the financial sector of the economy more than the amount of foreign exchange regulation, that is, there is an excess supply of foreign currency, there is the possibility of unplanned increase in the national currency and the depreciation of foreign currency. In this case the central bank buys foreign currency by exchanging it for the hryvnia, and financing sources over several days, a interview with a certain employee of National Bank, where he reports to journalists about something like "the NBU on a certain date at a rate of intervention had so many thousands (or millions) hryvnia. " If on the contrary, there is high demand for foreign currency and expected depreciation of the unplanned, the central bank sells foreign currency. For technical simplicity of the intervention in the Central Bank of Ukraine, there are the so-called foreign exchange reserves - the funds to specific accounts with the NBU in foreign currency, which it can use if necessary. Here's to such operations is balanced by supply and demand of foreign currencies and is limited to the level of fluctuations in the national currency. After all, unanticipated exchange rate movements had a negative impact on the economy, if such variations are dangerous to the national economy - they are a message of strong political pressure to protectionism in the domestic market. All this has a significant negative impact on international trade and investment. Uncertainty in the exchange rate makes both foreign and domestic companies to delay investment in export or import, as they may lose income while reducing, for example, home course Category: Foreign Exchange Market