Bankers Association advocates the abolition of foreign exchange auctions of the NBU
The Independent Association of Banks (IABU) recommends the National Bank of Ukraine to cancel the foreign exchange auctions.
This is stated in the IABU letter to the NBU, the "Interfax-Ukraine" reported.
The IABU believe that the auctions, that do not cover even 1% of the accumulated pent-up demand for the currency, only increase it, and the resulting rate does not reflect the market or weighted one.
As a result, most exporters are in no hurry to bring export proceeds to Ukraine, trying to make settlements abroad or use different payment schemes.
According to the Association, the sooner the market itself sets the rate, at which most market actors will be willing to make transactions, the sooner the market will be filled with currency due to increase in sales of foreign exchange proceeds by exporters and reduction of the demand for non-competitive imports, and the sooner the rate of hryvnia will begin to strengthen to the weighted one.
The Association also suggests to bring the interest rate to the level that corresponds to the projected inflation.