“The attractiveness of hryvnia assets should encourage the population to keep their savings in hryvnia.”, — write: www.unian.ua
The attractiveness of hryvnia assets should encourage the population to keep their savings in hryvnia.
Pishnyi said that the NBU has switched to the mode of controlled flexibility so that supply and demand form the exchange rate / UNIAN collage, screenshot, photo ua.depositphotos.comThe exchange rate in Ukraine is the responsibility of the National Bank, and one of its main functions is to absorb economic shocks. This was stated by NBU Chairman Andriy Pishnyi in an interview with Forbes Ukraine.“The main mandate of the National Bank, defined by the Constitution, is the stability of the monetary unit, price stability, financial stability and support of the government’s policy, in that order. The IMF does not determine the rate, the government does not determine the rate, the National Bank is fully responsible for this, it is our constitutional duty,” he said.
Pishnyi explained that the exchange rate should perform the function of absorbing shocks that are formed due to both internal and external factors.
According to him, the National Bank switched to the regime of controlled flexibility precisely so that supply and demand began to regain their influence on the formation of exchange rate dynamics – with the presence of the regulator on the market, which should ensure the stability of the currency market.
“But demand and supply, the feeling of currency risks should gradually return to the understanding of all economic agents – both business, government and the population. Because this makes us strong: the exchange rate then begins to perform this function of absorbing shocks. But when the currency market loses its stability, the National Bank must prevent this and accordingly have an effective influence on the restoration of this stability,” Pyshnyi said.
At the same time, he noted that devaluation makes a significant contribution to the processes associated with inflationary dynamics. The NBU is trying to bring inflation, which has already accelerated, to the target of 5%.
“In our opinion, any accelerated two-digit inflation has a critical impact on the relevant processes in the country, especially in terms of the attractiveness of hryvnia assets. The attractiveness of hryvnia assets was and remains one of the strategic priorities for the NBU, because it allows the domestic debt market to function actively, and it is the domestic debt market that should play its decisive role in the budget deficit map this year,” the head of the National Bank noted.
Pyshnyy explained that the attractiveness of hryvnia assets should also encourage the Ukrainian population to keep their savings in hryvnia, which should be protected from inflation.
“Simply put, a year from now, your deposit that you made today should give you the opportunity to buy the same amount of goods as today, which can be compensated by the corresponding deposit rate. And now the rates are positive even though this happened moderate devaluation,” he said.
Exchange rates in Ukraine – the latest newsThe situation on the foreign exchange market in October will be important for understanding with which indicators the current year will end and with which dollar rate Ukraine will enter 2025, predicts the head of the treasury department of “Globus Bank” Taras Lesovy.
At the same time, according to him, in the first days of the month, any significant changes are unlikely: they will rather be inertial, that is, they will logically continue the trends of the last week of September.
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