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Meeting of Dnipro business with Dmytro Sologub, Deputy Chairman of the Board of the National Bank of Ukraine

14/ 02/ 2020
    Within the framework of the project of the National Bank of Ukraine “Economic Express” Dmytro Sologub, Deputy Chairman of the NBU Board and Oleksandr Arsenyuk, Head of the NBU Open Markets Department had a meeting with the regional business in Dnipro. The main topics were: 📍 Situation with exchange rate volatility. 📍 Impact of revaluation on business. 📍 Hedging tools and whether they are currently used by companies. Dmytro Sologub also dispelled the main myths that are widely spread today: Myth # 1: The downturn in the Ukrainian economy is driven by the hryvnia strengthening. Myth # 2: strengthening the hryvnia is caused by speculative capital inflows Myth # 3: strengthening of the hryvnia is accompanied by a deterioration in the trade balance We also present some speakers theses on currency hedging: Course 2020 is floating. Therefore, hedging is needed. Not to hedge your positions is a very risky choice Market risk hedging strategy is a common worldwide practice Many banks in Ukraine offer currency-hedging services Using financial instruments to hedge currency risks is another step that brings Ukrainian business closer to the best international standards
01/

 

Within the framework of the project of the National Bank of Ukraine “Economic Express” Dmytro Sologub, Deputy Chairman of the NBU Board and Oleksandr Arsenyuk, Head of the NBU Open Markets Department had a meeting with the regional business in Dnipro.

The main topics were:

📍 Situation with exchange rate volatility.

📍 Impact of revaluation on business.

📍 Hedging tools and whether they are currently used by companies.

Dmytro Sologub also dispelled the main myths that are widely spread today:

Myth # 1: The downturn in the Ukrainian economy is driven by the hryvnia strengthening.

Myth # 2: strengthening the hryvnia is caused by speculative capital inflows

Myth # 3: strengthening of the hryvnia is accompanied by a deterioration in the trade balance

We also present some speakers’ theses on currency hedging:

  • Course 2020 is floating. Therefore, hedging is needed. Not to hedge your positions is a very risky choice
  • Market risk hedging strategy is a common worldwide practice
  • Many banks in Ukraine offer currency-hedging services
  • Using financial instruments to hedge currency risks is another step that brings Ukrainian business closer to the best international standards

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