Inflation Will Determine Currency Exchange Policy NBU.

The National Bank of Ukraine (NBU) intends to develop its currency exchange policy taking into account the need to contain inflation which is being caused mainly by external factors. According to the Head of the NBU, Vladimir Stelmakh, there are factors that can exert both revaluation and devaluation influence on the exchange rate. At the same time, Stelmakh said he supports the idea of maintaining a stable exchange rate. Since mid-April, 2005, the NBU has kept UAH/USD exchange rate unchanged at 5.05. Concorde Capital: Increased prices for imported gas from Russia in January to USD 95 for 1,000 cm and expected further growth to ~USD 130-140 this summer will be the major inflationary driver. Despite the bank’s adherence to the stable hryvnya, if inflation runs out of control, the NBU may once again have to sacrifice the national currency to the inflation gods.