A fixed exchange rate is currently more profitable for the economy in a war, the central bank says.
Fixed exchange rates are currently better than floating ones, Deputy Head of the National Bank Serhiy Nikolaychuk said in an interview with Interfax-Ukraine, published on Wednesday, May 18.
“We see more benefits from exchange rate adjustment than any other regime. If the situation changes, we will change our exchange rate policy. But for now we are considering such measures as non- appropriate, ”he said.
According to him, changes in exchange rate policy depend on the macroeconomic scenario of the life of the country.
“If we talk about how long we can maintain a fixed exchange rate, the answer is very simple: so far we can see that the advantages of this adjustment outweigh the disadvantages of such an exchange regime,” he said. NBU.
One of the requirements for the return to a floating exchange rate Nikolaychuk called greater self -balancing of the foreign exchange market.
“We also need to reactivate monetary transmission, because letting the exchange rate without being influenced by interest rates will not be a balanced decision,” Nikolaychuk added.
In his opinion, speaking about the scenario of a managed return to a flexible exchange rate, one should consider that it should not be characterized by a significant correction in one direction or another.
“Short, but more frequent measures are more appropriate for a situation where the market is almost, but not yet fully ready for a floating exchange rate. Accordingly, the central bank in such a situation will try to find a new equilibrium where the market will Balance itself. And then the rate will swim to the pre-war format, “he said.
Recall that the official dollar rate will remain at the level of 29.25 hryvnia until the end of the war with Russia.
The NBU warns that a long-term adjustment of the exchange rate could lead to the accumulation of macroeconomic imbalances.
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Source: korrespondent
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