The National Bank of Ukraine (NBU) is thoroughly monitoring the situation on the currency market and hopes it will stabilize due to the resumption of external funding and the elimination of political and economic risks, adviser to the NBU head Valeriy Lytvytsky has told Interfax-Ukraine.
“We believe in the success of the efforts of the NBU and the
government. We believe that the achieved balance on the currency market
is not final. It reflects only current economic and political
realities,” he said.
According to him, the situation on the market is related to the
difficulties in the economy, as well as with emerging export
restrictions, including on the “famous” direction.
“In addition, the market demand-side responds to political risks with
the misunderstanding of how quickly de-escalation may occur,” said
Lytvytsky.
He added that the situation is affected by the outflow of capital on
the balance of payments and the outflow of money from banks.
“The balance of supply and demand is not supported at the level the
hryvnia deserves. In terms of purchasing power parity we could have
figures close to those laid in the draft national budget for the current
year,” said the official.
He said that the speedy resumption of lending to Ukraine by the
International Monetary Fund (IMF) would help loosen pressure on the
currency exchange rate.
“After the IMF makes a positive decision, a wider movement of capital
to Ukraine will open, the demand will be closer to normal, as part of
risk will be removed,” said Lytvytsky.
He added that the NBU is considering the measures of quick response,
but the program with the IMF would allow it to expand impact on the
market due to additional instruments.
According to him, sooner or later all political aggravations should end with certain de-escalation.
“We hope that people will be guided not only by emotions, but also
pragmatism, understanding that one can lose much on the desire to buy
currency at any price,” he said.
