National Bank of Ukraine to minimize its presence at currency market
National Bank of Ukraine plans to minimize its presence at the foreign exchange market while progressing to achieve the target level of international reserves.
The Director of the open markets of the National Bank of Ukraine (NBU) Serhii Ponomarenko announced the plan during the press conference presenting the strategy of foreign exchange intervention.
Ponomarenko said: "In the near future we will still try to increase market liquidity, remove constraints, make the market more efficient and minimize our presence in the market. Today we are often forced to go to the market and organize auctions, but in the future we see our market presence only in certain situations - in case of excess liquidity and any shocks."
Among the factors that determine the need for interventions, NBU representative named the level of international reserves and liquidity of the currency market.
According to Ponomarenko, the foreign exchange market is not very liquid today with a daily volume of about $250-350 mln.
And therefore it is very sensitive to external shocks and requires the participation of the regulator.