- Review

What will ensure currency stability in Ukraine

Now in Ukraine there is a regime of managed flexibility. That is, the regulator does not set the rate, but controls it, thanks to certain tools. In particular, interventions.

What ensures stability in the currency market

During the report on this year’s work of the NBU, banker Andriy Pishnyi emphasized that the stability of the foreign exchange market is affected by the timeliness of the receipt of monetary assistance. He cited the first three months of 2024 as an example. It was from January to March that financial risks related to untimely receipt of external financing were realized. At that time, Ukraine had only a tenth of the expected amount of aid. However, now the situation has stabilized. Pishnyi does not give any course forecasts yet. According to him, first of all, the NBU should stabilize the currency market.

We are talking about such dynamics of the exchange rate, which will not threaten the maintenance of inflation at a moderate level in 2024 (despite the expected acceleration) with its subsequent decrease to 5%, the banker specified.

Pay attention! Stable external financing provides Ukraine with significant reserves. And this, in turn, allows the regulator to carry out reforms, in particular, to ease currency restrictions.