Central Bank says forex rate set at UAH 7.4-7.5 per U.S. dollar considered to be reference level

11:35

The National Bank of Ukraine (NBU) says it intends to protect the forex rate set at UAH 7.4-7.5 per U.S. dollar, the head of the group of advisors to the NBU Governor, Valeriy Lytvytsky said.

"I have instructions from the NBU head… We'll protect the rate recently observed on the market – it is about UAH 7.4-7.5 per U.S dollar. At this moment, we're ceasing defense, we're launching a counterattack," he said in the air of the First National TV Channel UT-1 on Wednesday evening.

In his words, the NBU has all necessary tools to make such plans reality, including forex auctions.

"I would not of course tell this if I wasn't authorized by the NBU head: we give businesses and the population a reference rate," he stressed.

In his words, there are grounds for the hryvnia to become stronger in future, after Ukraine sees the surplus of the balance of payments.

"Perhaps the balance of payments for November will show stability. Perhaps, foreign currency inflows and outflows will be positive, which we did not expect to happen so quickly," he said.

At the same time, he said, Ukrainians have started returning deposits to banks and inflationary expectations have shrunk somewhat.

Yet, he said, the situation in the banking system is influenced by the authorities' plans to review the national budget for 2008 and budget prospects for 2009.

04.12.2008