NBU has given a forecast of hryvnia exchange rate fluctuations
Kyiv • UNN
The NBU expects moderate fluctuations in the exchange rate in both directions within the framework of managed flexibility.
The National Bank of Ukraine predicts "moderate" exchange rate fluctuations in both directions, UNN reports.
Using the managed exchange rate flexibility regime, the NBU will compensate for the structural shortage of foreign currency in the private sector and smooth out excessive exchange rate fluctuations. The exchange rate will fluctuate moderately in both directions in response to changing market conditions, which will further strengthen the adaptability of the FX market and the economy
According to the regulator, "the exchange rate dynamics will be in line with the NBU's objectives of keeping inflation expectations under control, slowing inflation next year and returning to the 5% target over the policy horizon.
Addendum
The NBU switched to a regime of managed exchange rate flexibility, i.e. floating the exchange rate under central bank management, in October last year. This means that the NBU controls the dollar through foreign exchange interventions (buying and selling foreign currency) to prevent significant fluctuations.
NBU approves flexible inflation targeting regimeSep 12 2024, 02:04 PM • 30999 views
