National Bank of Ukraine has cut foreign currency interventions three times

For the past two months, the foreign exchange market in Ukraine has been showing a great ability to self-balance, so the National Bank didn’t have to resort to frequent foreign currency interventions.

Deputy Head of the National Bank of Ukraine Yuriy Geletiy said this in an interview with ZN.ua.

According to him, if we compare the number of interventions the regulator was dealing with since the beginning of 2021, with their frequency for the corresponding periods of previous years, then interventions have significantly decreased.

“Last year, if I’m not mistaken, we entered the foreign exchange market 29 times in three months, and this year – about ten times,” Geletiy said.

He explained why the need for intervention has diminished.

"We see that the market ... has become more balanced, there are fewer significant exchange rate fluctuations. Our priority remains unchanged – supporting the regime of floating exchange rate origination. That is, we are not setting any exchange rate benchmarks that the population or business could be guided by. What will be the course, the market decides. At the same time, we are targeting inflation," the deputy head of the National Bank emphasized.

He added that Ukrainians are already accustomed to the fact that the exchange rate can fluctuate in both directions, and this is absolutely normal.

As a reminder, Andrey Goilov, an analyst at RoboForex, told the Segodnya website that at the moment the NBU was very limited in measures to support the stability of the exchange rate due to a decrease in gold and foreign exchange reserves.

It was also reported that experts admitted the possibility of the hryvnia exchange rate collapsing in the autumn.



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