OREANDA-NEWS  On 13 October was announced, that the National Bank of Ukraine increased the exchange rate fluctuation band around the official UAH/USD exchange rate from 8% to 16% (8% both ways) till the end of 2008. Also the official exchange rate was set at UAH/USD 4.95 (4.85 earlier) for this period, while it was changed from UAH/USD 4.86 on 7 October to UAH/USD 4.89 on 8 October 2008.

The new exchange rate band allows the interbank exchange rate to fluctuate within the range of UAH/USD 4.55-5.35 without the NBU’s intervention. We see this decision corresponding with the current economic situation with decreasing export growth rates and a rise in the value of imported goods. We consider that the NBU needs to enter the interbank forex market in the nearest time to calm down the exchange rate, which reached a rate of UAH/USD 5.95 in local exchange outlets the retail on 7 October.