The hryvnia is very strong, inflicting losses on domestic exporters / Photo from UNIAN
The forex rate will depend on the country's economic development and the situation on global markets.
Ukraine's Minister of Economic Development, Trade and Agriculture Tymofiy Mylovanov forecasts the further strengthening of the national currency, the hryvnia, in 2020.
"The [forex] rate is a relative value of the Ukrainian economy against to the global one. When this value changes over developments in the world or in Ukraine, the rate should also change," the minister said on Facebook on January 6.
Read alsoExperts forecast Ukraine's hryvnia rate in 2020
"The National Bank is capable of handling such change for a while, reining the [forex] rate in a little or reducing fluctuations. But not a single central bank, even in developed countries, has the strength to counter major changes in the exchange rate. Will the exchange rate strengthen this year? Most likely, it will. But it all will depend on the development of the economy and the situation on global markets," he said.
As UNIAN reported earlier, Mylovanov said the hryvnia remained very strong, which was inflicting losses on domestic exporters, and the National Bank's refinancing rate was too high.
As of December 13, the National Bank reduced its key policy rate by 2 pp, to a two-year low of 13.5% per annum. It was a fourth consecutive reduction in the rate after October, September and July. Inflation in Ukraine in November 2019 in annual terms stood at 5.1%, slowing from 6.5% in October 2019.
Ukraine's central bank set the official forex rate of the hryvnia against the U.S. dollar at UAH 23.69 per U.S. dollar for a period from December 28, 2019, to January 7, 2020, inclusively.
Given the official rate, the national currency has strengthened against the U.S. dollar by 1.5% since the beginning of December 2019 and by 14.5% since January 2019.