The National Bank of Ukraine (NBU) intends to minimize its presence on the foreign exchange market, which is linked to the achievement of target levels of the NBU international reserves, Chief of the NBU`s Open Markets Department Serhiy Ponomarenko said at a briefing when presenting a strategy on foreign exchange interventions developed by the regulator.
”We will seek to increase market liquidity in the near future, to eliminate restrictions while making the market more efficient and also to minimize our presence on the market. At present, we often have to intervene on the market and hold auctions. But in the future, we will only be present in the market in certain situations – in case of excessive liquidity and certain shocks,” Ponomarenko said.
The level of international reserves and the liquidity of the currency market will determine the need for further interventions by the regulator, the NBU representative said.
According to Ponomarenko, the liquidity of the foreign exchange market is currently not sufficient, with a daily volume estimated at $250-350 million. Therefore, the situation on the market remains very sensitive to external shocks and requires the regulator`s involvement.
