IMF demands National Bank to devalue hryvnia - media

The International Monetary Fund (IMF) demands that the National Bank of Ukraine (NBU) devalue the hryvnia (reduce its value against foreign currencies).

This is reported by Bloomberg, citing sources.

"The National Bank is under pressure from the IMF, which demands that the war-weary country devalue the national currency," the article says.

It is noted that this proposal may provoke tension in Ukraine on the eve of important negotiations on a new loan package for Ukraine. At the same time, forecasts in favor of devaluation are limited, since Ukraine's budget largely depends on direct international aid, and devaluation may "trigger inflation that could destroy the financial cushion."

Devaluation may also have political consequences. According to one of the sources, Kyiv is unlikely to take this measure, since the conflict with russia continues and public fatigue is growing.

"National Bank officials are resisting such a move, citing risks to inflation and public sentiment, the sources said on condition of anonymity because the talks are taking place behind closed doors," Bloomberg writes. However, it should be noted that Ukraine depends on international support, in particular on money from the IMF.