The Deputy Head of the National Bank of Ukraine Serhiy Nikolaychuk does not consider the transition to a floating rate as a short-term hope.
The National Bank of Ukraine is ready to abandon the fixed exchange rate of the hryvnia against the dollar, but this requires a combination of several factors. This was said by the deputy head of the NBU, Serhiy Nikolaychuk, in an interview with Economic Truth.
The interview states that in December last year and January this year, the NBU sold $3 billion in the interbank market, and receiving international assistance allows not only to cover expenses, but also to increase reserves – up to $29.9 billion.
“We have always said that fixing the exchange rate is a temporary solution. We remain supporters of a floating exchange rate, it is clear that in the current conditions it is “managed floating”, and we will return to this regime in as soon as possible there. are requirements for it,” he said. Nikolaichuk.
As noted by the deputy head of the NBU, the first and most important condition for this is the emergence of an alternative to the fixed nominal anchor rate for the economy.
“In terms of inflation targeting, this is an indicator of inflation,” he stressed.
The second condition is that the currency market should be less sensitive to situational factors.
“The third factor is the better condition of the foreign exchange market, its greater balance. I would also add to it the restoration of the status and effectiveness of the discount rate as the main financial instrument,” said Nikolaychuk.
The deputy head of the NBU does not consider the transition to a floating exchange rate as a short-term hope.
“Return to floating” does not mean a “rally” in the foreign exchange market. Any transition will be gradual and managed with the creation of appropriate requirements. It is necessary so that the transition to “floating” does not generate shocks for either the foreign exchange market or the economy “, – said Nikolaychuk.
Earlier it was reported that the National Bank reduced the sale of foreign currency from reserves
The amount of bank deposits of Ukrainians exceeds one trillion hryvnias
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Source: korrespondent
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