On October 17, 2014, First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk met with the members of the European Business Association. The meeting was focused on the issues related to the imposition by the National Bank of administrative measures aimed at preventing sharp fluctuations in the hryvnia exchange rate.

Oleksandr Pysaruk has noted that he is an advocate of the market-based exchange rate-setting mechanism. With the ongoing hostilities in the country, however, this mechanism is not fully operational. "The contraction of the economy, a fall in foreign exchange inflows, and negative public expectations force the National Bank to employ a blend of market and administrative measures. The central bank calls for businesses to put up with temporary restrictions as their imposition has been prompted by the need to eliminate the capital flight schemes. Unfortunately, administrative restrictions always bring about inconveniences. Please be patient," Oleksandr Pysaruk said, addressing the business community.

He cited examples to prove that such a mixed approach to foreign exchange controls had made it possible to achieve some positive results. In particular, the foreign exchange market began to operate in a more sustainable manner than a few weeks ago. "The number of bids for the purchase of foreign exchange is gradually decreasing. We see a decline in the spreads even in the black market. We hope that in a few weeks' time we will be able to meet the deferred demand for foreign exchange and reduce, if not eliminate, the size of the black market through joint efforts with the law enforcement bodies," said Oleksandr Pysaruk.

The slowdown in speculative demand for foreign exchange will enable the National Bank to rescind some administrative restrictions. "The central bank is grateful to the business community for understanding and welcomes the initiative to carry out joint business analysis of future NBU regulations. I hope that the teamwork will help mitigate the negative impact of administrative restrictions. Dialogue and management of public expectations are the tools through which the National Bank intends to regulate the exchange rate," said Oleksandr Pysaruk.

"The central bank continues to focus its attention on the rehabilitation of the banking system. It will remain involved in efforts to remove insolvent banks and banks involved in illicit operations from the market," emphasized Oleksandr Pysaruk. At the same time, he reassured the business community: "Systemically important banks will not be affected. If required, the National Bank will provide refinancing loans to them".