Governor of the National Bank of Ukraine Ihor Sorkin made a statement recently on the situation of the foreign exchange market.

Sorkin attributed recent tensions in the interbank foreign exchange market to a combination of internal and external factors, adding that there are no grounds that this will be a long-term trend.

Sorkin foresees a weakening in the short-term surge in demand for foreign currency, after which the market will begin operating with the exchange rate fluctuating in a narrower band.

There have been similar challenges in the past, Sorkin said, that have been resolved. He said that excessive reactions would play into the hands of speculators.

In order to curb speculative demand and to introduce temporary rules designed at stabilizing the foreign exchange market, the National Bank of Ukraine has tightened monitoring and control over the market developments. The monitoring is aimed at tightening control and enhancing transparency of interbank transactions conducted by legal entities.