The National Bank promises to significantly limit changes in the exchange rate, preventing both a significant weakening of the hryvnia and a significant strengthening.
The National Bank of Ukraine introduces a regime of managed exchange rate flexibility. This was reported on the regulator’s website on Monday, October 2.
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It is indicated that the new regime will come into effect from tomorrow – October 3.
Under this regime, the official rate will be determined based on the rate for interbank market transactions, and will not be set prescriptively by the National Bank in accordance with NBU Board Resolution No. 18, as it has been since February 24, 2022, the report said.
It is indicated that now the Hryvnia exchange rate is able to change in the same direction – to increase and decrease, responding accordingly to changes in the balance of supply and demand in the foreign exchange market. But the NBU promises to carefully monitor the situation in the foreign exchange market and will remain a major player here.
“The National Bank will significantly limit changes in the exchange rate, preventing both a significant weakening of the hryvnia and a significant strengthening,” the regulator emphasized.
At the same time, the exchange rate in the market segments where citizens can buy and sell money will be set according to the same rules as in the last year and a half. We are talking about the same cash market and banks’ card rates, said the NBU.
The head of the NBU Andriy Pyshny said in a briefing that the transition to a more flexible exchange rate of the Hryvnia does not mean that it will be determined by the market, as it was before the war with Russia.
“The NBU has not released the exchange rate. No. We have not returned to the floating exchange rate regime that existed before the full invasion. We have not considered this option, due to the lack of monetary structure in market,” he said.
According to Pyshny, the National Bank’s decision mainly concerns businesses that buy and sell currency in the interbank market.
We remind you that in September the NBU sold a record volume of foreign currency since January. And since the beginning of the year, the regulator has sold $19.4 billion to maintain market balance.
Source: korrespondent
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