The hryvnia weakened by 13% against the dollar over the year of the managed flexibility regime on the foreign exchange market, which at the same time helped curb inflation and improve the trade balance, the National Bank Governor Andriy Pyshnyi wrote this in an oped for Economic Pravda.
“In the year of managed flexibility, the hryvnia official exchange rate against the dollar weakened by almost 13%. This happened against the background of a combination of exogenous (external) factors, softening of monetary policy and currency restrictions by the National Bank,” the head of the NBU noted.
At the same time, he said that the weakening had little effect on general inflation. According to the head of the regulator, inflation remained close to the NBU’s target of 5%.
The situation with foreign trade also improved as its deficit decreased by $2.3 billion over the eight months of 2024 against last year.
Pyshnyi also stated that the hryvnia weakening did not reduce the attractiveness of assets in the national currency. While the UAH to USD exchange rate on the cash market weakened by 9% over the year, the rates for hryvnia deposits exceeded 12%, and those for domestic bonds reached 19%.
“In the context of hryvnia attractiveness, our task is primarily to protect the savings of the population in hryvnias from inflation. This protection was fully ensured, including thanks to the moderate exchange rate dynamics,” the head of the NBU emphasized. (Ukrinform)