13:35 07.02.2014

New official hryvnia exchange rate in line with market indicators, says NBU

3 min read
New official hryvnia exchange rate in line with market indicators, says NBU

The new official hryvnia exchange rate is in line with market indicators, Director of the chief monetary and credit policy department at the National Bank of Ukraine (NBU) Olena Scherbakova has said.

"Yesterday we set the exchange rate that we have on the market," she said at a press conference on Friday.

"We'll stick to the position to go in this direction. There is a market, and there is business which sees the exchange rate," she added.

"[The official exchange rate] should change every day," she said.

Scherbakova said that the NBU has a system which at the end of the day presents the average exchange rate on the market: yesterday it showed UAH 8.70/$1, and the NBU set the relevant exchange rate.

She said that the criteria for the possible deviation of the official exchange rate from the market rate of 2% is retained, although the NBU now plans to set the official exchange rate as close as possible to the interbank indicators.

"It’s better to be in the market trend and work with the market, and then we'll be more understandable and banks will be more understandable," she said.

Scherbakova said that the NBU would be as transparent and open as possible for the market.

She also said that the situation on the interbank market is a short-term trend.

"These are not events of 2008, there is no large outflow," she said.

In general, she said that the situation was fully manageable.

"[The NBU's] measures will allow us to cope with the situation and normalize trust in the banking system," she said.

She said that the NBU's measures taken would be canceled as soon as the situation stabilizes.

Commenting on the prospects of the exchange rate pace this year, she said that the issue was discussed with the government: there is still likelihood of a certain strengthening of the exchange rate.

"I think that we should be calmer by summer. Our historic experience shows this," she said.

"UAH 8.50/$1 is the average exchange rate for the year, maybe we'll see this exchange rate, I don't know," she added.

Commenting on the reasons for the hryvnia devaluation, she said that these are the impact of devaluation of some international currencies, including in Russia, and political factors.

She said that since late January the NBU worked with traditional instruments for two weeks hoping to stabilize the situation, although despite interventions demand on foreign currency did not fall.

"We've taken additional measures. The market stopped reacting to our traditional instruments," she said.

Scherbakova said that this week the central bank held meetings with banks, and the steps being realized is a consolidated position of the banking system.

She said that the NBU asked bank heads to be more attentive to actions of their treasurers.

"Today, it's a Klondike for those who work on the forex market. However, there are moments when one should not do this, although last year we worked normally," she said.

She said that the NBU tries to minimize effects for individuals when taking stabilization measures.

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