Economy minister says current hryvnia rate “very strong” bu…

The minister commented on the latest forex developments and the central bank’s key rate.

Photo from UNIAN

Photo from UNIAN

Minister of Development of Economy, Trade and Agriculture of Ukraine Tymofiy Mylovanov believes that the current, “very strong” hryvnia exchange rate is an issue for national exporters, while the key rate recently set by the National Bank of Ukraine is still too high.

“The rate, in my opinion, is now very strong, and it harms exporters. The same thing with the key rate. I fully respect the National Bank and the independence of the National Bank, but, in my opinion, the discount rate is too high and conservative. If we have inflation at 4-5%, the key rate shouldn’t be ten percent higher,” Mylovanov told a briefing Tuesday, according to an UNIAN correspondent.

Read alsoHryvnia sets another four-year high against dollar at UAH 23.26

As UNIAN reported earlier, from December 13, the National Bank of Ukraine lowered its key rate by 2 percentage points, to a two-year low of 13.5% per annum. It was the fourth consecutive reduction this year.

Inflation in Ukraine in November 2019 amounted to 5.1% in annual terms, slowing down from 6.5% a month earlier.

On Thursday, December 26, the National Bank of Ukraine set the official hryvnia to dollar exchange rate at UAH 23.26, which is the record high since January 2016.

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