National Bank does not intend to spend reserves

The National Bank of Ukraine will respond to rate jumps, but it has no intention to spend gold and currency reserves.
NBU governor Valeria Hontareva says about this, LIGABusinessInform reports.
“The exchange rate flexibility means that we will not keep it within the frames of some guidelines or corridors. But this does not mean that the National Bank will avoid participating in the market. Therefore, on Friday, the NBU entered the interbank market with a bilateral quotation 12.45/12.60 UAH/USD. We will not take a passive position. But we have not a task to conceal the real state of the market. By active actions on the market we will put out the panic. But we do not intend to spend the reserves,” she said at a meeting with journalists.
Hontareva reminded that the rate is no more pegged to hard currencies.
“Since April, Ukraine has a flexible exchange rate. It is too early to say about the free exchange rate. The free exchange rate is when there is neither restriction on export-import operations, nor on the movement of capital. We still have limitations. Therefore, the hryvnia has not yet become a freely convertible currency,” the NBU governor said.
11.08.2014 12:41

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