2015-11-04 18:00

Ukraine Price Goal Is Key to Sturdier Currency for Central Bank

 REUTERS/Valentyn Ogirenko
REUTERS/Valentyn Ogirenko
Stability in Ukraine’s currency over the past few months will persist as long as next year’s inflation goal is met, according to the central bank’s deputy governor.

“We don’t see excessive volatility in the hryvnia exchange rate when we assume 12 percent inflation,” Dmytro Sologub said Tuesday in an interview in Kiev. “I’m very much OK with the volatility we’ve had since March, maybe even slightly more.”

Fluctuations have been about 5 percent in either direction in the past seven to eight months, according to Sologub. While the central bank has allowed the hryvnia to trade more freely, it steps in to smooth what it deems excessive movements in the currency.

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