The National Bank of Ukraine (NBU) said on Thursday that it has modified the operational framework of monetary policy to improve efficiency and transparency.
The changes include eliminating foreign currency auctions. Instead, the NBU, in collaboration with the banking sector, will set the exchange rate of the national currency based on international market supply and demand. The bank has changed the role of discount rates, making them more significant, as benchmark monetary policy rates.
Interest rates on liquidity adjustment instruments will be set in line with the discount rate. This move is expected to eliminate uncertainty and allow price-setting mechanisms to be more efficient in regard to lending resources.
These moves tighten the NBU's authority on monetary policy, allowing the country's macroeconomic climate to gain stability. To this end, the bank has increased its base rate to 19.5 percent, asserting that increases are unlikely to have a significant negative impact on the business climate in Ukraine.
More Stories
- EUROPEAN INVESTMENT BANK: Bosnia and Herzegovina: EIB provides €340 million to advance works on northern part of Corridor Vc
- ABN AMRO SERVICES COMPANY: Fempower Your Growth: like tindering with female entrepreneurs
- EUROPEAN INVESTMENT BANK: Egypt: Team Europe - EIB and Banque Misr work together to support private businesses and speed up the recovery of SMEs from COVID-19
- ASIAN DEVELOPMENT BANK: ADB, NNS Sign Loans to Build Milestone Solar Power Project in Uzbekistan
- ASIAN DEVELOPMENT BANK: $123 Million ADB Loan to Help Build Elevated Walkways in Manila
- EUROPEAN INVESTMENT BANK: Germany: EIB provides €15 million of funding to IDnow
- ASIAN DEVELOPMENT BANK: CAREC Endorses Long-Term Strategy to Promote Safe, Sustainable, and Inclusive Tourism
- EUROPEAN INVESTMENT BANK: EIB Group provides €150 million to support artificial intelligence companies
- ASIAN DEVELOPMENT BANK: ADB Approves $430 Million to Help Rehabilitate Power Distribution Networks in Uttar Pradesh, India
- EUROPEAN INVESTMENT BANK: Greece: EIB backs EUR 470 million road safety scheme