The National Bank remains the main player in the market, compensating for the currency deficit from reserves.
The structural currency deficit remains, since the war deprived Ukraine of a third of the economy.
The head of the National Bank of Ukraine (NBU) Andriy Pyshnyy said this in an interview with Interfax-Ukraine.
At the same time, he does not believe that any radical changes are needed now.
“No radical changes are expected. We see that this the regime works. Due to the fact that changes in the balance between supply and demand determine the direction of the exchange rate, macroeconomic imbalances are corrected. The market has adapted,” he said.
Pyshnyy emphasized that the NBU is constantly involved in market operations, since the structural currency deficit remains. The war has resulted in the loss of a third of Ukraine's economy, creating huge budgetary needs and significant import requirements, while the country's exports remain limited.
“However, we see that the depth of the currency market has tripled – the volume of transactions on the interbank market without the participation of the National Bank today is about $110 million,” Pyshny said, another positive result of the regime change.
Pyshny also believes that the diverse fluctuations in the market have also brought back the sense of currency risk, which means that the population and businesses have begun to approach planning more responsibly.
“Thanks to the transition to managed flexibility, the exchange rate has begun to act as a shock absorber, rather than a generator,” he emphasized.
Recall that Pyshny made a forecast of what will happen to the dollar exchange rate in October. According to him, Ukrainians should not expect changes in currency exchange rate policy in the near future.