Banking society supports transfer to market mechanisms for exchange rate formation, says NBU

Banking society supports the transfer to the market mechanisms for exchange rate formation, the National Bank of Ukraine (NBU) said on its Facebook page, referring to the results of the meeting with heads of 40 largest banks.

According to the report, meeting participants unanimously agreed that the single exchange rate should be on the stable market.

"We're supporting the transparent policy of exchange rate formation and the transfer to the market mechanisms for exchange rate formation. We'd like to have the single and effective exchange rate on the market. The main thing in the introduction of the regulator's monetary policy is the continuation of the use of the flexible exchange rate system," reads the report, citing NBU Governor Valeriya Gontareva.

She said that the regulator does not want to abandon the possibility of influencing the market using administrative tools and the central bank could return to them at any moment if there are preconditions for this.

The NBU also said that First Deputy NBU Head Oleksandr Pysaruk informed the meeting participants on the work of the Individuals' Deposit Guarantee Fund where the supervision functions are being reinforced.

"The result will be the effective fulfillment of the functions by the fund and approaching its operation to the better global experience. Representatives of the World Bank and the U.S. Department of the Treasury are working in the fund now, and they will directly control the process of removing banks from the market," reads the report.