NBU preparing number of steps on currency liberalization in coming weeks

The National Bank is preparing a number of steps on currency liberalization in the coming weeks.

This is stated in the NBU message, Ukrainian News Agency reports.

Taking into account a fairly comfortable level of international reserves, the controlled situation in the foreign exchange market and expectations for further international assistance, the NBU is preparing a number of steps on foreign exchange liberalization in the coming weeks.

They will align with the Strategy for easing foreign exchange restrictions, moving to greater exchange rate flexibility, and returning to inflation targeting.

These steps have already been taken into account in the updated macroeconomic forecast, which involves keeping international reserves this year and next at a level close to the current one.

At the same time, as expected, in March, about USD 9 billion was received from international partners. This made it possible to increase international reserves to almost USD 44 billion.

In addition, in recent days, Ukraine has received positive news from the United States about the approval of the military and financial assistance package.

Besides, another tranche in the amount of EUR 1.5 billion came from the EU. Taking this into account, Ukraine can count on USD 38 billion of a U.S. foreign budget aid this year.

At the same time, the implementation of measures to strengthen Ukraine's ability to self-sufficiency continues.

The government is strengthening its own resource base and increasing involvement in the domestic market.

For its part, the NBU is improving currency control measures.

Together with the establishment of external assistance rhythmics, this will allow to finance planned budget expenditures and maintain a controlled situation in the foreign exchange market.

As Ukrainian News Agency earlier reported, from July 21, the NBU adjusted the official hryvnia exchange rate by 25% to 36.5686 UAH/USD.

Since August 6, 2022, the National Bank abolished the restriction, according to which banks and non-bank institutions had to buy cash currency from the population at a rate not lower than the official one.

The National Bank allowed banks to sell more currency to the public.

The National Bank has been implementing managed exchange rate flexibility since October 3.