REUTERS
The regulator does not plan to restrict the use of foreign currency by citizens or companies.
Deputy Governor of the National Bank of Ukraine (NBU) Dmytro Sologub says the share of U.S. dollars in Ukraine in 2018 was 43% in gross lending and 42% in bank deposits; however, the country's natural rate of dollarization, in accordance with the needs of businesses and households, is about 20%.
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Reducing the share of U.S. dollars in the economy to the natural level is possible if the National Bank of Ukraine succeeds in inflation targeting and macroprudential regulation, and continues developing the financial sector with the use of new capital market instruments, simultaneously encouraging the growth of confidence in the national currency, the hryvnia, the regulator's press service said on April 11, quoting Sologub as saying.
The NBU expects dollarization will be reducing naturally, and it does not plan to impose restrictions on the use of foreign currency by citizens or companies.
As UNIAN reported earlier, bank deposits in the national currency in Ukraine in March 2019 shrank by 1%, to UAH 539.7 billion (US$20.1 billion), while deposits in foreign currency fell by 0.7%, to US$13.4 billion. Since the beginning of the year, hryvnia deposits have decreased by 0.1%, while those in foreign currency have grown by 0.2%.