NBU explained the failure to curb the strengthening of the hryvnia

НБУ пояснил отказ сдерживать укрепление гривны

The Central Bank is not going to support exporters at the expense of loss of public confidence.

The national Bank is not going to contain the strengthening of the hryvnia to the dollar, which is observed in 2019 as it will lead to negative consequences. This is stated in the explanation posted on the website of the NBU in Facebook.

According to the report, under the regime of floating exchange rate the exchange rate should correspond to the state of the economy.

“If the NBU, in spite of the real economic situation does not allow the hryvnia to strengthen, and will keep a rate of, for example, 26 or 27 hryvnia for one dollar, I will think of the business and the population? They will perceive that the NBU protects the course level, and consequently the interests of certain stakeholders”, – convinced the national Bank.

Accordingly, it will lead to loss of trust to the NBU and the national currency. “This means that everyone will prefer to invest in foreign currency. This will only push the hryvnia exchange rate towards devaluation, and price tags in stores – in the direction of growth”, – stated in the message.

Recall, the regime of floating exchange rate of hryvnia to the dollar, which adheres to the national Bank of Ukraine provides a number of advantages for the economy

NBU allows a very significant strengthening of the hryvnia in the case of reforms.

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