“The strategy consists of three main components. These are the easing of currency restrictions, the transition to greater flexibility of the exchange rate, and the return to the principles of inflation targeting. Each part contains a general description of the sequence of stages, key priorities, principles and proper prerequisites for the implementation of the strategy,” a statement reads.
At the same time the NBU stressed that steps taken to implement the strategy will not be tied to specific dates. The NBU will implement the strategy consistently and gradually, based on the completion of the necessary prerequisites. During the strategy’s implementation, the NBU will consider an analysis of the previous step’s effectiveness, as well as other aspects of macroeconomic policy (in particular, the fiscal position and debt sustainability). With this approach, the future return to inflation targeting with a floating exchange rate will occur in an “orderly” manner.