You're reading: Azarov: No grounds for hryvnia devaluation

There are currently no grounds for a devaluation of the national currency, Prime Minister Mykola Azarov told journalists in Kyiv on Wednesday.

"There are no grounds for the devaluation of the exchange rate," he said.

Azarov noted that exchange rate stability was based on sufficient foreign exchange reserves and a surplus of the country’s balance of payments.

He said that Ukraine’s financial authorities would closely monitor the situation on the foreign markets.

"The pace of economic development in such countries as the United States and in Europe is slowing, and this poses a serious risk to the global economy," Azarov said.

At the same time, he said that there were some optimistic arguments that suggest that the world will not be engulfed by a second wave of crisis.

Azarov also noted that this week’s weakening of the Russian ruble was a temporary adjustment of the exchange rate.

"With regard to Ukraine, we have every reason to believe and rely on the exchange rate that we set for 2011, i.e. on the stability of the exchange rate," he said.

The forex rate set at Hr 7.9500 per U.S. dollar was used for the calculation of the 2011 national budget indicators.

The central bank considers the hryvnia fluctuation band set within several percent within a year as acceptable.

The official exchange rate on Aug. 10 is Hr 7.9708/$1.