Transactions on the interbank currency market at exchange rates of UAH 17-18/$1 will be considered by the National Bank of Ukraine (NBU) to be an intention to destabilize the market

A source in financial circles told Interfax-Ukraine that NBU Governor Valeriya Gontareva made the announcement at a meeting with representatives of the largest banks in Ukraine, held at the NBU on Monday.

"We continue a slight [exchange rate] movement downwards and are trying to work within the agreed range of UAH 16-16.50/$1. We consider deals at the exchange rate of UAH 17-18/$1 as speculation, and an intention to destabilize the market," the source told Interfax-Ukraine, commenting on Gontareva’s position.

At the meeting, the NBU head admitted that there is extra liquidity in the cash market, amounting to UAH 35 billion, adding that hryvnia held in cash has not been retrieved from a storage facility in Crimea.

The source said that Gontareva stated that she supports the floating exchange rate.

As for the devaluation of the Russian ruble, Gontareva said that this could affect Ukraine's balance of payment. She noted that in December 2015 Ukraine is due to pay back a $3 billion loan to Russia, which will create additional devaluation pressure on the hryvnia.

Commenting on the situation in the banking system, she said that individuals send money to reliable banks, and individuals are losing funds deposited in troubled financial and credit institutions.

The banker said that today the NBU does not have a list of banks that could be liquidated: natural selection is evident, and banks which had problems at the beginning of crisis (before November 2013) are leaving the market.