OGR Managing Partner David Vavra discussed Ukraine's monetary and exchange rate policies in wartime in NV Ukraine


July 8, 2024

In an interview with the Business section of The New Voice of Ukraine, OGR Managing Partner David Vavra pointed out that Ukraine's 5% inflation target was reasonable, as it balanced economic stability and adaptability during the war. He praised the National Bankf of Ukraine's monetary policy success during the war, highlighting its crucial role in maintaining financial stability and supporting the war economy. David defended the NBU's decision to fix the exchange rate from February 2022 to October 2023, arguing that it was essential for restoring public trust and ensuring monetary stability. He emphasized the necessity of gradual currency liberalization to reduce economic costs and foster growth, despite the ongoing war. Vavra believed that a return to full exchange rate flexibility coupled with full-fledged inflation targeting was appropriate if economic conditions allowed, drawing on examples from other Eastern European economies during their EU accession.

Read the article (in Ukrainan) here: https://biz.nv.ua/ukr/finance/nbu-2024-ekspert-pro-valyutnu-politiku-inflyaciyu-v-ukrajini-i-depozitni-sertifikati-novini-ukrajini-50431319.html