National Bank of Ukraine: termination of the Grain Agreement may put pressure on Ukrainian hryvnia

Ukraine’s export performance will deteriorate if the “grain corridor” ceases to operate – the National Bank does not rule out a possible increase in pressure on the hryvnia.

The implementation of the scenario with the termination of the Grain Agreement will have negative consequences for Ukrainian exports with “a corresponding decrease in foreign currency inflows to the country and a possible increase in pressure on the hryvnia exchange rate,” reports Ukrinform with reference to the NBU.

It is noted that restrictions on the supply of Ukrainian food by some European countries can also complicate the situation.

The National Bank also reminds of increased pro-inflationary risks, in particular, in view of the security situation and Russian terrorist attacks against critical infrastructure facilities. Thus, the destruction of the Kakhovskaya Dam, according to the NBU, will have an additional contribution to the annual inflation at the level of 0.3 percentage points due to the complication of the work of a number of enterprises and the partial loss of the harvest.

The photo is illustrative.