The temporary weakening of the hryvnia is a natural reaction of the market to the switch to the flexible exchange rate formation, although demand and supply on the interbank market will tend towards equilibrium, which will positively influence the exchange rate.
According to a post on the National Bank of Ukraine’s (NBU) Facebook page, NBU Governor Valeriya Gontareva announced this at a meeting with bankers on Feb. 9.
“The sharp jump is a first reaction of markets. We believe that demand and supply on the currency market will find their balance and the adequate price for sure,” she said.
Gontareva said that the regulator does not deny the possibility of the market being influenced by administrative tools, and that it could return to them at any time if the relevant preconditions appear.
Representatives of banking sector also agreed to trigger the practical implementation of the swap line with China, reads the report.
