The First Deputy Head of the NBU, Serhiy Nikolaichuk, participated in the podcast 'Budget Conversations' of the Center for Fiscal Policy Research. A lot of interesting topics were discussed, including: the status of the National Bank and its goals, the evolution of cooperation with the IMF, the most difficult decision made during the full-scale war, the circulation of money, and the accuracy of budget exchange rate forecasts.
The National Bank is a state institution with a special status that has the exclusive right to issue the national currency and is responsible for its stability. For money to function effectively, the NBU cares for the stability of the banking sector and the reliable operation of payment systems. Macroeconomic stability is a complex concept that encompasses several dimensions: price stability, sustainable economic growth, and exchange rate stability.
The successful cooperation of Ukraine with the International Monetary Fund is an important benchmark and a 'quality mark' for other partners. 'The IMF has a high status, strong expertise, and is the foundation of tripartite cooperation: Ukraine fulfills its obligations, the Fund confirms the successful execution of these obligations through reviews of the existing program or the launch of a new one, and international partners finance the budget deficit of Ukraine, based on the framework agreed upon in the IMF program,' explained Serhiy Nikolaichuk.
The Most Difficult Decision of the NBU
'Understanding the risks, we prepared thoroughly for this step and are very satisfied with the result. The exchange rate should adjust to changes in the fundamental conditions of the country's economy. We have restored the ability to use the exchange rate as another tool of our macroeconomic policy,' emphasized the First Deputy Head of the NBU.
You can listen to the full podcast via the link in the comments.
This article describes the participation of the First Deputy Head of the NBU in the podcast, where he discussed the status and activities of the National Bank, cooperation with the IMF, and difficult decisions that were made. The key tasks of the NBU and its role in ensuring the stability of the country's financial system are revealed.