Speaking in an interview broadcast live on First National TV Channel (Pershyi Natsionalnyi), Governor of the National Bank of Ukraine Stepan Kubiv said that the National Bank of Ukraine had not recently spent a single US dollar inappropriately or on propping up the exchange rate. However, the hrynnia has the prospect of appreciating upon receipt of the first tranche worth USD 3 billion of a bailout package from the International Monetary Fund.

 "As far as the real exchange rate is concerned, it will be completely different, more floating, reflecting the market forces. The exchange rate will become predictable. The hryvnia has the prospect of appreciating thanks to receipt of financial assistance from the IMF and the EBRD," said Mr Stepan Kubiv.

According to him, if the National Bank of Ukraine had chosen this path earlier when conditions were more favorable, when Ukraine ran a budget surplus and sound balance of payments, and had sufficient foreign exchange receipts and foreign exchange reserves, it could have shifted to established international practices painlessly and effectively.

Mr Stepan Kubiv noted that the Government and the National Bank of Ukraine were forced to take unpopular measures in the context of a very complicated situation and the need to implement the economic reforms.

Regarding the inflation targeting, the Governor of the National Bank of Ukraine said that it was a very difficult process and it would take the National Bank of Ukraine not less than a year to introduce it.