National Bank of Ukraine Implements New Currency Policy: Over 60% of Transactions Occur Without NBU Involvement
In 2023, Ukraine’s National Bank took a significant step in adjusting the domestic currency market by introducing a managed flexible exchange rate regime.
This move removed the previously imposed fixed rate restrictions, which had limited market dynamics.
According to NBU Governor Andriy Pishnyi, currently about 60% of currency transactions in Ukraine happen without direct involvement of the regulator, marking a doubling compared to two years prior.
This development indicates a gradual economic adaptation to new conditions and a reduced dependence on state regulation.
Pishnyi emphasizes that the shift to a flexible rate has contributed to market stabilization, helped absorb seasonal fluctuations, and minimized currency risks for market participants.
He also notes that the government continues to sell currency outside the open market, facilitating an even distribution of reserves.
The managed flexible regime has turned the exchange rate into a tool to counter economic shocks, transforming it from a source of instability into a buffer.
Regarding the current account deficit, Pishnyi explains that it results mainly from increased inelastic imports of weapons and energy products, which are less responsive to currency fluctuations.
In 2025, imports of machinery and energy grew by a third, limiting the impact of currency adjustments.
Looking ahead to 2026, Ukraine plans to receive over 45 billion USD in international aid, with some funds still under negotiations with partners.
Pishnyi expresses confidence that this strategy will stabilize the economy, and the Ukrainian team is actively working to achieve these goals and attract the necessary resources.
Additionally, Ukraine is contemplating moving away from the US dollar by tying its currency more closely to the euro, aiming to strengthen economic relations with Europe amid the global fragmentation of trade.