NBU planning new steps in coming weeks to liberalize Ukraine's foreign exchange market

MOSCOW. April 25 (Interfax) - The National Bank of Ukraine (NBU) has announced a number of steps to liberalize the foreign exchange market in the coming weeks, taking into account the level of international reserves, the controlled situation on the market and expectations of further international assistance.

"Now we see reasons to complete the first stage [of the strategy for easing foreign exchange restrictions], which provides for certain relaxations on new dividends, the lifting of the ban, respectively, on the import of services and currency liberalization in the possibility of servicing old debts," Ukrainian Media reported, citing Head of the NBU Andrey Pyshny.

The National Bank is currently at the stage of finalization and "final calibration" of these decisions, which it intends to announce in the near future, he said.

"They [currency easing] will be consistent with a strategy of easing foreign exchange restrictions, moving towards greater exchange rate flexibility and returning to inflation targeting. These steps have already been taken into account in the updated macroeconomic forecast, which envisages maintaining international reserves this year and next at levels close to current ones," Pyshny said.

After the start of the military operation in the country in February 2022, the NBU suspended the operation of the Ukrainian foreign exchange market, fixing the exchange rate of the hryvnia to the dollar. The regulator then started gradually lifting restrictions.