UAH/USD Exchange Rate Increase Completely Logical and Expected Step by NBU, — OTP Bank CEO
A 25% rate increase is a logical NBU solution, stated Volodymyr Mudryi, OTP Bank CEO.
According to him, this UAH devaluation corresponds to the current inflation, which amounts to 21%, and the USD/EUR ratio, strengthened by approximately 5%.
This decision ensured a more transparent UAH/USD rate course for the market, albeit via administrative measures, and reduced negative expectations regarding the devaluation level, V. Mudryi emphasized.
"For the economy as a whole, such a decision is significant because it adds transparency to the real situation. Also, the "undervalued" exchange rate led to an increase in prepayments for imports and a delay in foreign exchange income receiving for export," the banker noted.
Besides, the exchange rate transparency has to contribute to the deposit rates revision, which has not occurred so far, even after NBU's discount rate had been increased, he considers.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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