NBU’s supervisory board sees official UAH/USD at 4.85±5% in 2009

At a sitting yesterday, the National Bank of Ukraine’s supervisory board approved its target for official UAH/USD exchange rate at 4.85%±5% in 2009. In July, the National Bank of Ukraine’s supervisory and governing boards approved anchoring the official UAH/USD exchange rate at 4.85±4% for 2H08. Andrii Parkhomenko: This is one more step indicating that the central bank is steadily moving toward a more liberalized exchange rate. After keeping the rate unchanged at UAH/USD 5.05 for more than three years, in May 2008, the Bank lowered it to 4.85 and has changed it on a daily basis, although within a narrow margin. We retain our forecast of yearend official UAH/USD at 4.95, as we believe that it will be pressured by seasonal demand for the greenback. However, we do not rule out that the rate will stay at around 4.85, if the NBU increases interventions to keep the rate at this level.