The International Monetary Fund (IMF) is expecting the hryvnia exchange rate to stabilize shortly after the approval of the program of economic reforms, which could be supported by a two-year Stand-By Arrangement (SBA) worth $14-18 billion, Head of the IMF European Department Reza Moghadam has said.
“Currently the market is very thin: Ukraine’s foreign exchange
reserves are low, the geopolitical situation is unstable, and in these
conditions the high volatility of the hryvnia is not surprising. But we
hope that as soon as the program enters into force and the country’s
reserves are replenished, this will support the national currency
exchange rate,” he said at a press conference.
“In the meantime [until the program is approved] such volatility is inevitable,” the IMF official added.
Speaking about progress in cooperation with Ukraine, the head of the
IMF European Department noted that Ukrainian authorities demonstrate
significant progress in overcoming the current situation, and not only
in resolving immediate problems, but also chronic.
“If everything continues to go well, we expect that the IMF Board of
Directors will consider the program in late April-early May,” said
Moghadam.
