Flexible exchange rate will increase export efficiency of Ukraine, says IMF
A flexible exchange rate corresponds to the economic parameters of Ukraine and will enhance its export efficiency, International Monetary Fund (IMF) Resident Representative in Ukraine Jerome Vacher has said.
"The system of a flexible exchange rate best suits the features of the Ukrainian economy. We believe that a more flexible exchange rate would push the export efficiency, the economic growth, especially on the background of volatile export prices and demand," he said at the annual banking conference organized by the Adam Smith Institute in Kyiv on Wednesday.
Vacher also noted the key recommendations to Ukraine: in addition to enhancing the flexibility of the exchange rate, the country needs to strengthen its banking sector, carry out an ambitious consolidation of the budget sector, increase domestic energy tariffs and implement comprehensive structural reforms to improve the business climate.
"Prior to stimulation, it is necessary to strengthen the banking system and the economy. To do this, you need a reliable, good macroeconomic policy," the banker said.
The IMF resident representative in Ukraine also said that the findings of the economic situation in the country made by the IMF mission recently working in the country would be discussed by the IMF Executive Board in December.