The National Bank of Ukraine is committed to ensuring the stable exchange rate of the national currency, the hryvnia. This was stated by the head of the NBU, Andriy Pyshny, in an interview with the agency “Interfax-Ukraine” on October 15.
According to Pyshny, the NBU’s main goal is to maintain a stable and predictable exchange rate for the hryvnia, which is crucial for the country’s economic stability and development. The NBU is constantly monitoring the exchange rate and takes necessary actions to prevent any sharp fluctuations.
One of the reasons for the NBU’s focus on maintaining the currency stability is the high level of foreign exchange reserves. As of September 2021, the NBU’s reserves reached a record high of $30.4 billion, which is enough to cover more than four months of imports, according to Pyshny.
The NBU has also implemented a flexible exchange rate regime, which allows the hryvnia to adjust to market fluctuations, while the central bank intervenes only in extreme cases to prevent excessive volatility.
In addition to these measures, the NBU has also introduced a number of reforms to strengthen the stability of the currency. This includes the implementation of inflation targeting, which aims to keep inflation within a target range of 5% +/- 1 percentage point. This approach has proven to be effective in many other countries and helps to maintain price stability, which is crucial for the overall economic stability.
Furthermore, the NBU has been actively working on improving the transparency of its operations and decision-making processes. This includes regular communication with the public and the media, as well as publishing detailed reports on the bank’s activities, which allows for better understanding of the NBU’s policies and decisions.
Pyshny also highlighted the NBU’s efforts in promoting financial literacy among the population, which he believes is crucial for the overall stability of the financial system. The NBU has launched various educational campaigns and initiatives to raise awareness about financial management and responsible borrowing.
The stability of the hryvnia is not only important for the country’s economy, but also for the well-being of its citizens. A stable currency ensures that prices for goods and services remain predictable, which is especially important for low-income households. It also boosts confidence in the national currency, both domestically and internationally, which is crucial for attracting foreign investments and promoting economic growth.
In conclusion, the National Bank of Ukraine is committed to maintaining the stability of the hryvnia and has implemented various measures to achieve this goal. With a flexible exchange rate regime, high reserves, and a focus on transparency and financial literacy, the NBU is well-equipped to ensure the country’s economic stability and promote its development.
