Ukrainians are eating through their savings put aside for a rainy day
The predominance of the supply of foreign currency on the Ukrainian market is explained by the fact that people change their savings.
Viktor Suslov, former Minister of Economy of Ukraine, announced this on the air of the 112 Ukraine TV channel, reports a PolitNavigator correspondent.
“If citizens sell more currency than they buy, this means that they have used their individual foreign exchange reserves. Most citizens, even not very rich ones, tried to at least little by little save these dollars for a rainy day. And now they are selling them.
What does this mean? A lot of people have lost their jobs. Rising unemployment leads to currency sales. Many people have gone abroad, they earn this currency there, transfer it to their relatives or bring it themselves and sell it here. The fact is that, on average, the situation of the vast majority of people has worsened (and this is confirmed by all social surveys), and many were forced to withdraw savings from banks - we also have a decrease in deposits,” Suslov said.
According to the head of the National Bank Council, Bogdan Danylyshyn, since the beginning of September, banks have purchased $113 million, and since the beginning of 2020 - more than $1,2 billion.
“On the one hand, the increase in the supply of cash foreign currency helps to balance the foreign exchange market, on the other hand, it indicates the continuation of negative trends in reducing household savings, the dynamics of which have become negative since the 1st quarter of 2019. In other words, this indicates that the population is “eating up” on their savings,” Danylyshyn wrote on his Facebook page.
Ukrainians are eating up their savings for a rainy day.