Biasedly responding to fluctuations in the currency market at the beginning of 2024, Deputy Chairman of the National Bank of Ukraine (NBU) Serhii Nikolaychuk revealed his opinion on the possibility of returning to a fixed dollar exchange rate.
Emphasizing that all changes in the foreign exchange market during the flexibility regime are a normal phenomenon, the NBU official determined that the regulator has no intention of returning to a fixed dollar rate, and this was a conscious choice.
"The NBU faithfully keeps its promise regarding the flexibility of the exchange rate, which can change depending on the market situation. This was already observed in October and the first half of November 2023," the NBU representative noted.
Noting that thanks to the successful adaptation of the foreign exchange market to flexibility management, the National Bank plans to increase the amplitude of exchange rate fluctuations. However, he confidently expressed that thanks to the created prerequisites, these fluctuations do not pose a threat.
Emphasizing that a return to a fixed exchange rate is currently not under consideration, Serhii Nikolaychuk reminded that the NBU deliberately refused this approach and defined certain conditions for choosing a new regime of exchange rate flexibility. He remained confident that the current situation on the foreign exchange market is not extraordinary and will not harm the implementation of important tasks, in particular, maintaining the attractiveness of hryvnia instruments, such as deposits and bonds of domestic government loans (OVDP).
