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Monday, May 27, 2024

The NBU will be more curious about whether or not it will be returning to a floating rate.

The fixed exchange rate helped calm the situation, bring it under control and provide an anchor for the population and businesses in the conditions of a perfect storm.

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Andrey Pyshny, head of the NBU , said this in  an interview with Forbes .

“A fixed rate is a departure from market principles, but on the other hand, it is a forced thing. Floating exchange rate and inflation targeting is what the NBU has been hard at work for, these are the basic things that I support,” Pyshny said.

According to him, the general position of the NBU’s key personnel is that the fixed exchange rate should still play its role for some time.

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“So far, we do not see any grounds for re-linking the exchange rate, however, we consider a return to floating to be premature,” the head of the NBU added.

He emphasized that this does not mean that the current peg is forever.

“Sooner or later we will return to both the floating exchange rate and inflation targeting, but only when it is really appropriate,” says Pyshny, adding that this topic is not a subject of discussion with the IMF, and there are no fundamental disagreements.

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