The National Bank does not plan to artificially restrict the strengthening of the hryvnia

The NBU does not change its monetary policy and only intends to smooth out excessive fluctuations, said the head of the National Bank.

In the event of a market reversal, the NBU will not artificially restrict the strengthening of the hryvnia. This was stated by the director of the National Bank, Kirill Shevchenko, in a meeting with members of the European Business Association on Thursday, September 24.

“The exchange rate policy does not change. The exchange rate is formed by the market, and we are only smoothing out excessive fluctuations in one direction or another. In August, the supply of foreign exchange was greater than the demand. Therefore, the hryvnia strengthened and the NBU was replenishing its reserves. In September, demand for foreign exchange increased By importers. This led to some weakening of the hryvnia. To smooth fluctuations, the NBU resumed interventions in the sale of foreign currency. There is no one fundamental pressure on the hryvnia. There is a significant supply of foreign exchange from exporters. In October-November, the supply of foreign exchange will likely increase due to the sale of farmers. In the event of a market reversal. The NBU does not intend to artificially restrict the strengthening of the hryvnia, “Shevchenko said.

Recall that previously the National Bank sold 160 million dollars to support the hryvnia. Changes in the behavior of the NBU in the market were more likely associated with changes in the open markets department than with a change in strategy, explained Dmitry Sologub.

The NBU also mentioned the reasons for the drop in GDP in the second quarter. Ukraine’s economy was falling due to quarantine restrictions, reduced demand, and reduced investment.

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