On Monday, November 10, 2014, Governor of the National Bank of Ukraine Valeriia Gontareva held a joint meeting with representatives of the business community. The pressing issues pertaining to the conduct of export and import operations under current conditions were high on the meeting's agenda.

The Governor of the National Bank briefed the meeting participants on the macroeconomic developments in Ukraine and reassured them that the imposition of temporary administrative measures is an inevitable move. The central bank is interested in cooperation with representatives of the domestic business community and hopes that through joint efforts it will be possible to mitigate the negative impact that the imposition of foreign exchange restrictions has on legal businesses.

Anatoliy Kinakh, Head of the Ukrainian League of Industrialists and Entrepreneurs noted that "the economy is a system of connected vessels", which is experiencing a systemic crisis today. We should work out joint actions while following the principle of "doing no harm". He emphasized that the authorities should maintain a constant dialogue with businesses. The ominous downward trend in domestic trade turnover needs to be addressed. Urgent measures should be taken to reduce the adverse impact that high inflation and the hryvnia's depreciation of almost 60% (since the beginning of the year) have on the purchasing power of individuals and businesses. In addition, the export-oriented producers that manufacture high value-added products in mechanical engineering industry expect the regulator to apply a differentiated approach when it comes to imposing foreign exchange restrictions.

Filia Zhebrovska, Director General of Farmak JSC, noted that "the country is currently experiencing its deepest crisis since independence. The business community is fully aware of the need to introduce administrative restrictions. At the same time, businesses expect the regulator to ease or rescind certain measures that have complicated doing business with foreign partners." In addition, Filia Zhebrovska takes the view that the government should be involved in joint efforts with the central bank to come up with incentives to encourage foreign exchange inflows. According to her, the use of documentary settlements under export and import transactions might ease the tension in the foreign exchange market, however, these instruments should be used with due consideration of the specifics  and business traditions of different regions across the world.

The meeting participants offered to provide consulting assistance to the regulator in drafting regulations, emphasizing that not only the banking legislation but also the tariff and tax legislation needs to be improved. Governor of the National Bank of Ukraine Valeriia Gontareva reassured the attendees that the National Bank remains committed to the market-based exchange rate-setting mechanism and will use its best efforts to ensure the smooth and efficient operation of the banking system.

The meeting participants concurred on the need to exchange ideas on a regular basis.