“The interest rate and exchange rate policy of the NBU received a favorable review from the experts of the International Monetary Fund.”, — write: www.ukrinform.ua
The interest rate and exchange rate policy of the NBU received a favorable review from the experts of the International Monetary Fund.
According to Pyshnyi, in his communication based on the results of the last mission, the Fund noted the high degree of program implementation, in particular, the timely implementation of structural beacons from the National Bank’s sphere of responsibility.
“In particular, the NBU implemented a structural beacon regarding the assessment of the main financial and operational risks for financial stability under various adverse scenarios of the development of events and the update of the corresponding action plan,” Pishniy noted.
The mission also witnessed progress in the implementation of the structural beacons established by the NBU, the deadline of which is approaching.
“These are beacons regarding the implementation of the supervisory risk assessment methodology for formulating the priorities of supervisory activities, as well as the joint work with the FGVFD and the Ministry of Finance of Ukraine on the preparation of a framework program for the financial rehabilitation of banks,” the head of the NBU specified.
He emphasized that representatives of the National Bank of Ukraine and the IMF reached agreements on further policy measures and reforms aimed at ensuring macroeconomic stability in wartime conditions.
“We must continue efforts to activate domestic sources, implementing the National Revenue Strategy. This is one of the important tasks for the country,” Pishniy noted.
According to him, the interest rate and exchange rate policy of the NBU received a favorable response from the Fund’s experts, who agreed that, given the risks of inflation, a pause in the cycle of lowering the discount rate by the National Bank is appropriate.
“We will be ready to increase it if pro-inflationary risks and the threat of unbalancing expectations continue to materialize,” Pyshnyi assured.
The head of the National Bank noted that the exchange rate should continue to act as a shock absorber and adjust to fundamental market changes, and international reserves should be maintained at a sufficient level, taking into account the risks.
Read also: Budgetary support exceeded $100 billion – the Ministry of Finance named the largest donors of Ukraine He also assured that the regulator will maintain a balanced and step-by-step approach to easing currency restrictions in accordance with the Strategy for Easing Currency Restrictions, transitioning to greater exchange rate flexibility and returning to inflation targeting.
“Currency liberalization will be consistent with the general direction of monetary policy,” Pyshnyi said.
At the same time, he thanked the team of the IMF and the National Bank for their joint work in finding the necessary solutions during the protracted aggression against our country.
As reported, Ukraine and the International Monetary Fund agreed at the expert level on the sixth revision of the Program within the EFF Extended Financing Mechanism, which will make it possible to attract another 1.1 billion dollars to the state budget.