The NBU is interested in moving the exchange rate in both directions, as it improves the flexibility of the economy.
The National Bank of Ukraine assessed the situation in the foreign exchange market at the end of summer 2024. The regulator fully allows the dollar exchange rate to change not only up, but also down. This was said by the head of the NBU Andrey Pyshny in an interview with Economic Pravda.
“We do not tolerate devaluation, we allow flexibility – moderate fluctuations in the exchange rate, under the influence of supply and demand, in any direction, if it does not threaten price stability,” he said.
According to Pyshny, the NBU is interested in moving the exchange rate in both directions, because it restores the sense of currency risk, improves the flexibility of the economy, and avoids the accumulation of imbalances.
“The exchange rate must regain its role as an absorber of internal and external shocks. The reserves for this we “cut” the peaks of dangerous volatility and support the constructive uncertainty,” added of the head of the NBU.
We remind you that in the first seven months of 2024, the official dollar exchange rate increased by 8% – to 41 Hryvnia. The NBU actually controls the exchange rate through interventions in the interbank market. In July, the rate jumped to 41.50 UAH/dollar, then the NBU said it was threatening price stability and began to cut the rate.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.