IMF program will help stabilize currency exchange rate – NBU official
The National Bank of Ukraine (NBU) is thoroughly monitoring the situation on the currency market and hopes it will stabilize due to the resumption of external funding and the elimination of political and economic risks, adviser to the NBU head Valeriy Lytvytsky has told Interfax-Ukraine.
"We believe in the success of the efforts of the NBU and the government. We believe that the achieved balance on the currency market is not final. It reflects only current economic and political realities," he said.
According to him, the situation on the market is related to the difficulties in the economy, as well as with emerging export restrictions, including on the "famous" direction.
"In addition, the market demand-side responds to political risks with the misunderstanding of how quickly de-escalation may occur," said Lytvytsky.
He added that the situation is affected by the outflow of capital on the balance of payments and the outflow of money from banks.
"The balance of supply and demand is not supported at the level the hryvnia deserves. In terms of purchasing power parity we could have figures close to those laid in the draft national budget for the current year," said the official.
He said that the speedy resumption of lending to Ukraine by the International Monetary Fund (IMF) would help loosen pressure on the currency exchange rate.
"After the IMF makes a positive decision, a wider movement of capital to Ukraine will open, the demand will be closer to normal, as part of risk will be removed," said Lytvytsky.
He added that the NBU is considering the measures of quick response, but the program with the IMF would allow it to expand impact on the market due to additional instruments.
According to him, sooner or later all political aggravations should end with certain de-escalation.
"We hope that people will be guided not only by emotions, but also pragmatism, understanding that one can lose much on the desire to buy currency at any price," he said.
