As the National Bank explained, “The regulator will carefully monitor the situation in the foreign exchange market and remain a key player. To provide stability, the NBU will compensate for the structural deficit of foreign currency. Thanks to this, the exchange rate will be able to both increase and decrease in value. The NBU will significantly limit exchange rate changes, preventing both a significant weakening of the hryvnia and a significant strengthening,” the explanation reads.
The official exchange rate under the managed flexibility regime will be determined by operations on the interbank foreign exchange market with the NBU’s active participation. At the same time, the rate on the cash market and the card rates of banks will be subject to the same rules as in the last year and a half.
The NBU believes that the new exchange rate regime will strengthen the stability of the Ukrainian economy and the foreign exchange market and reduce the risks of accumulating currency imbalances.