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NBU chief stressed that only structural reforms would really improve quality of life in Ukraine.
Governor of the National Bank of Ukraine (NBU) Yakiv Smolii says a real increase in Ukraine's production and exports is required to improve the country's balance of payments in the medium term.
"If we are talking medium term, it's necessary to increase domestic production and exports rather than manipulate figures through the hryvnia exchange rate," the regulator's press service quoted Smolii as saying.
According to the official, only structural reforms are important for the economy, including for attracting long-term capital to Ukraine, with a judicial reform being one of the key reforms in this regard.
Smolii stressed it was only structural reforms that would really improve quality of life in Ukraine. "Improvement of social standards is, of course, a good thing, but one can actually live happily and successfully only thanks to real incomes that the economy creates," he said.
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At the same time, the NBU chief said that with high inflation, the regulator's monetary policy would remain tough, although this would hinder the revival of economic growth.
"If we want someone to buy equipment, create production, and implement infrastructure projects, we should take control of inflation. Otherwise, no long-term strategic investor will come here," the official summed up.
UNIAN memo. Ukraine's national currency, the hryvnia, beefed up against the U.S. dollar by 0.5 % in May 2018 alone and by 0.7 in January-May.
Hryvnia's current quotes against the dollar on the interbank forex market settled at UAH 26.15 to the dollar, according to dealers.
The state budget of Ukraine for 2018 assumes the average annual rate of the hryvnia at the level of about UAH 29.3 to the dollar, while the rate at the year-end is seen at about UAH 30.1 to the dollar.
Most Ukrainian businesses forecast the hryvnia exchange rate against the U.S. dollar in the range of UAH 28-31 within the next 12 months, according to an NBU survey.
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The hryvnia's historic low against the U.S. dollar was at UAH 30.01 per U.S. dollar in February 2015.
The National Bank in May decided to keep its key rate at 17%, as a month earlier.
Inflation in Ukraine in May 2018 slowed to 11.7% year-over-year (y-o-y) against 13.1% recorded in April 2018 y-o-y.