The National Bank of Ukraine has continued to carry out foreign exchange interventions to mitigate sharp exchange rate fluctuations in the market. In order to calm the market players, the National Bank of Ukraine intervened in the market with two-way quotations UAH 12.61-12.70 per USD1.

"The National Bank of Ukraine is not going to draw back from its policy of maintaining a flexible exchange rate. At the same time, economic agents' reaction to the military conflict in the east of the country is putting downward pressure on the hryvnia exchange rate. It is a temporary trend, as the country's external position has become more sustainable in recent months. Therefore, there are no macroeconomic grounds for considerable exchange rate fluctuations," noted Governor of the National Bank of Ukraine Valeriia Gontareva.

In particular, it is worth mentioning that the current account deficit, which is the most stable part of the balance of payments, had shrunk to USD 1.9 billion in the first half of 2014, compared with a USD 5.4 billion deficit in the first half of 2013. In addition, the country has received considerable financial assistance from the international financial institutions in recent months. In particular, this month we expect to receive a loan worth USD 500 million from the World Bank and an installment worth USD 1.45 billion from the International Monetary Fund. June saw a resumption of FDI (Foreign Direct Investment) inflows.

In addition, NBU Governor noted that if there was a substantial increase in foreign exchange market turbulence, the National Bank would be forced to impose administrative restrictions, along with market-based measures.