The banks are expecting the National Bank of Ukraine (NBU) to take measures to stabilize the hryvnia exchange rate, Serhiy Tihipko, the former head of the NBU and CEO of Kyiv-based Swedbank, has said.
"Regarding the measures the banks are awaiting from the national bank, this is, first and foremost, to ensure the stability of the hryvnia. The deposit outflow has now practically stopped. As soon as people who withdrew their deposits from the banks regain confidence that the hryvnia is stable, they will stop converting their deposits from the hryvnia into the dollar, and they will bring deposits back to banks after they see an [annual interest] rate of 20%," he said.
Tihipko stressed the need to take comprehensive measures to reach stability in the hryvnia exchange rate.
"If the NBU intervenes [in the interbank market] with $300-500 million a day, this won't resolve the situation. It is necessary to introduce the 100% obligatory sale of the currency, ensure the centralization of currency exchange operations through the NBU, toughen the consideration of bids and place strict controls on imports," he said.
