No more ‘dangerous’ money printing, says National Bank of Ukraine

27 March, 12:33 PM
NBU Governor Andriy Pyshnyy (Photo:Andriy Pyshnyi/Facebook)

NBU Governor Andriy Pyshnyy (Photo:Andriy Pyshnyi/Facebook)

Ukraine will no longer return to “dangerous” money printing to cover state expenses, National Bank of Ukraine (NBU) chair Andriy Pyshnyi confirmed to the Financial Times on March 26.

An "open conflict" with the Ukrainian government on this matter was settled, Pyshnyi said.

Printing of billions hryvnia last year "created huge risks for macro-financial stability," although it was a necessary step at the time to address the state budget deficit, he said.

“It was a quick remedy, but very dangerous,” Pyshnyi told the newspaper.

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Ukraine's Financial Ministry didn't want to use the domestic bond markets or increase revenues instead, the outlet wrote.

The NBU has since reversed course, paving the way for the $15.6 billion loan recently agreed between the IMF and Kyiv.

The agreement with the IMF includes measures for economic stabilization in the country such utilizing domestic bond markets, increasing tax revenues, and ceasing the printing of money.

There were fears that Ukraine would fall into a hyperinflationary spiral last year due to the printing of money to compensate for the delay in the disbursement of EU financial aid, the Financial Times added.

Though the hryvnia was devalued in 2022, the country did not experience hyperinflation.

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