NBU sets the official UAH/USD exchange rate at 4.85±4% for 2H08
7 July 2008
On Friday, the National Bank of Ukraine’s supervisory and governing boards approved to anchor the official UAH/USD exchange rate at 4.85 for 2H08, allowing for a up to a 4% fluctuation up or down, which implies a band of UAH/USD 4.66-5.04. On May 21, the National Bank of Ukraine lowered the official exchange rate by 4% to UAH/USD 4.85, after it had held the rate fixed for three years. Andrii Parkhomenko: We see this step as one that finalizes the NBU’s move toward from fixed exchange rate system to horizontal band system. We believe that through 2008 the NBU will allow the interbank rate to float within the band and will enter the market to intervene should it deviate. We forecast the official UAH/USD rate to reach 4.95 by yearend.
