The strengthening of the hryvnia will be of a short-term negative effect, but will lead to positive consequences.
This is evidenced by the inflation report of the NBU.
The national Bank informs that in the past year has been a significant strengthening of the hryvnia to the dollar and basket of currencies of major trading partners of Ukraine. According to him, in Ukraine, like in other States, reducing inflation and strengthening of the national currency will be of a short-term negative.
The NBU notes that due to the strengthening of the Ukrainian currency decreased the income of exporters in local currency and, accordingly, revenues to the state budget.
At the same time, it indicates that the stabilization of the hryvnia exchange rate is a precondition for long-term economic growth.
“The strengthening of the hryvnia was the major factor in reducing inflation to the target level of 5% ± 1 p. p. the stable and low inflation is a necessary condition for long-term growth, after all, provides the necessary basis for business planning and capacity savings,” explained the national Bank.
Thanks to improvements in the national currency dropped the price of investment imports, foreign trade and Ukraine’s position has not deteriorated. Also, increased competitiveness in attracting workers.