Ukraine central bank consistent amid political tumult

Significance

The NBU has weathered political storms and economic turbulence since 2014 to emerge with clear anti-inflationary policies: keeping the key refinancing rate above inflation and maintaining comfortable international reserves to constrain money supply and ensure currency stability. It has retained the IMF's confidence where other state institutions have not.

Impacts

• The NBU's pursuit of policies driven by economic rather than political imperatives will strengthen economic reformers in government.
• The central bank policy of supporting the hryvnia will increase the attractiveness of Ukraine's sovereign debt.
• Close cooperation with the NBU creates a template for IMF collaboration with central banks in states such as Moldova and Belarus.