The International Monetary Fund (IMF) supports the decision of the National Bank of Ukraine (NBU) from October 3 to move from the hryvnia fixed exchange rate regime to its managed flexibility regime and believes that this will further support the economic stability and the foreign exchange market, deputy head of the IMF mission in Ukraine Nathan Epstein has said.

The ability to manage the exchange rate in a way that minimizes fluctuations seemed to us an important step forward, he said at a briefing in Kyiv on Wednesday.

Epstein recalled that as part of the program, the NBU at the end of June approved a Fund-supported strategy for normalizing its monetary policy and exchange rate policy, which includes the easing of foreign exchange controls, as well as a gradual increase in exchange rate flexibility and, ultimately, its return to the system inflation targeting.

According to the deputy head of the mission, the conditions necessary to abandon the fixed exchange rate have been met, first of all, a decrease in inflation, a stronger position of international reserves and stability in the foreign exchange market.

In general, Epstein noted the trust that the National Bank managed to gain in managing monetary and exchange rate policy during the war.

IMF representatives also expressed satisfaction with the existing dialogue between the NBU and the Ministry of Finance and its results, which do not call into question the independence of the central bank.