The interbank foreign exchange market has recently experienced some tensions arising from a combination of internal and external factors.

There are no grounds to say that this is a long-term trend.

We feel confident that in the near future a short-term surge in demand for foreign currency will weaken.

The market will start operating, with the exchange rate fluctuating within a narrower band. How soon this will happen depends on our joint actions.

All the market participants, including the National Bank, banks, and their depositors are in the same boat and are concerned about a stable financial sector.

We have experienced similar situations in the past and always found a way to deal with the challenges. I think that this situation is no exception.

Excessive reaction to any market developments plays into the hands of speculators. Therefore, the National Bank of Ukraine tightens monitoring and control over the market developments in order to curb speculative demand and introduces temporary rules designed to stabilize the foreign exchange market. They are primarily aimed at tightening control and enhancing transparency of interbank transactions conducted by legal entities. We have discussed these rules with bankers today.

We have already seen that the market is showing the first signs of improvement. When the situation improves, all the measures will be immediately cancelled.

As always, the National bank of Ukraine remains a key player in the foreign exchange market in order to exercise its main function. In recent years, the banking system has gained sufficient experience in dealing with the challenges and become more resilient.

The National Bank of Ukraine, in its turn, has an ample range of instruments to address short-term market volatility.

The support from banks and their professional handling of the situation will strengthen our confidence in the future.