The National Bank of Ukraine has all the tools necessary for implementing an effective monetary policy.
This was stated by Serhii Mamedov, Vice President of the Association of Ukrainian Banks and Chairperson of the Board of GLOBUS BANK, on Channel 5.
Commenting on the currency exchange rate increases in May, he considers them quite acceptable and somewhat predictable. According to the expert, there is currently nothing extraordinary happening in the foreign exchange market. There are sufficient reasons for this, as the market operates under a flexible exchange rate regime.
“We see daily that exchange rates either increase or decrease, which is a direct result of the National Bank's policy of gradual liberalization of the foreign exchange market. Let me remind you that the year started with a rate of 38 UAH. There was also a rate of 39 UAH. But the 2024 budget clearly states that the average annual rate should be at the level of 40.7 UAH per dollar. Therefore, it is quite obvious that the rate was expected to increase,” the banker believes.
He is convinced that the exchange rate situation in the market will be stable and predictable, and the exchange rate indicators will meet budget expectations. In his opinion, the flexible exchange rate policy is a good signal for citizens that the market is alive and the risks of a sharp collapse of the national currency are minimal.
“Annual inflation does not exceed 3.2%, and although exchange rate fluctuations are noticeable, they are not critical. These two factors clearly indicate the effectiveness of the monetary and inflation strategies implemented by the National Bank, aimed not only at stabilization but also at the active development of the economy. Achieving this in wartime conditions is already a significant achievement,” Serhii Mamedov concluded.