KIEV, Feb. 24 – The decrease of the hryvnia exchange rate on the interbank currency market continue being caused by both temporary and fundamental market factors that result in the reduction of supply of foreign currency, Deputy National Bank of Ukraine Governor Oleh Churiy said.

"The seasonal decline in business activity in January entailed the fall in supply of income in foreign currency in February, and political instability and a delay with the resumption of cooperation with the International Monetary Fund affect business expectations," he said in a report spread by the central bank late on Tuesday.

Among fundamental factors is the reduction of prices on the global commodity markets and devaluation of currencies of Ukraine's partner countries.

"The stirring up of business activity, restoration of political stability in the country and continuation of cooperation with the IMF should remove these temporary misbalances," he said.

He said that smoothing of extra fluctuations of the hryvnia exchange rate is part of the monetary policy of the central bank aimed at providing price stability, and the regulator has enough financial resources for the further currency interventions if they are required.

Churiy said that since the beginning of the year the NBU held three auctions to buy currency worth $65.7 million and 10 auctions to sell currency worth $238.5 million, including $98.5 million in February, while Ukraine's forex reserves as of early February reached $13.4 billion.

He added that the NBU retains the refinancing rate at 22% per annum since September 2015 to prevent external risks that influence on the state of the balance of payment and the hryvnia exchange rate and to cut inflation to 12% in 2016.

"We can see the results of January and February: the moderate monetary policy is efficient and it helps slowing consumer inflation," he said. (om/ez)