The National Bank of Ukraine (NBU) sees no reason to intervene in the forex market amid the ongoing weakening of the hryvnia as it deems the forex fluctuations as acceptable and plans no measures to prop up the hryvnia.
”Fluctuations take place if demand is high. We will not influence the forex rate today, but we`re monitoring it from the perspective of inflation targeting. The NBU will take action only in case of sharp fluctuations. As of today, the oscillation is acceptable and the NBU doesn`t plan any intervention,” NBU Vice Governor Yakiv Smoliy told reporters.
The Central Bank has switched to inflation targeting and the ratio of the foreign currency to the hryvnia is now formed by the market, he recalled.
He declined to announce the detailed forecasts for forex rates, saying they had already been revealed by the Finance Ministry in its plans for next year.
UNIAN memo. Tension at the administrative border between occupied Crimea and mainland Ukraine early in August triggered forex fluctuations, when quotations hit the level set at UAH 25 per U.S. dollar, after being between UAH 24.7-24.9 per U.S. dollar in the two preceding months.
Presently, the hryvnia continues to become weaker, losing five to ten kopiykas each day.
On August 26, the forex rate was UAH 25.40/25.46 per U.S. dollar on the interbank forex market when trading opened.
The hryvnia was the weakest in its history in February 2015 when the exchange rate was UAH 30.01 per U.S. dollar.
According to the draft budget resolution for 2017, which was approved by the Cabinet of Ministers on June 24, 2016, the average forex rate in 2017 is projected at UAH 27.2 per U.S. dollar.