Ukrainian National Bank's Statement on Adaptation to New Market Conditions
Date: 2023-11-16 Author: Dima Zakharov Categories: ECONOMY
Market Stability Amidst Transition
The Ukrainian currency market has shown stability in the wake of the shift to a managed floating exchange rate system. Reports from the National Bank indicate a consistent situation despite the absence of direct involvement in interbank operations. According to Ukrinform, this information was shared after an online meeting between the National Bank officials and leaders of Ukrainian enterprises participating in business expectation surveys.
Increased Interbank Activity
Following the implementation of the new exchange rate regime, there has been a 1.5-fold surge in interbank transactions without the National Bank's participation. This surge reflects a gradual deepening and increased liquidity within the market, as stated in the official announcement.
Currency Movement and Operational Resumption
The National Bank highlighted that since the introduction of the managed floating exchange rate system, the hryvnia has moderately fluctuated in both cashless and cash segments. Client transaction volumes and balances have returned to levels seen in previous months. Notably, bank transactions are occurring more evenly throughout the day.
Steps Towards Relaxation
The Ukrainian National Bank is confidently progressing through the initial phase of easing currency restrictions. This phase involves minimizing the diversity of exchange rates, liberalizing trade operations, and fostering new credits and investments. Notably, measures have been taken to allow the repayment of "new" debts to foreign creditors and credits secured by international financial organizations or export credit agencies.
Online Gathering Highlights
The online event, attended by 120 representatives from 105 enterprises spanning various sectors and regions of Ukraine, saw the participation of the Deputy Chairman of the National Bank, Serhiy Nikolaychuk, and several departmental representatives.
Transition to Managed Floating Regime
As of October 3, 2023, the Ukrainian National Bank adopted a managed floating exchange rate regime. The bank assures that this move doesn't relinquish control over the exchange rate, emphasizing continued regulatory oversight in the interbank currency market.
