KIEV, July 3 - Ukraine should move to establish flexible exchange dynamics within a currency corridor, says the annual presidential message to the Ukrainian parliament.

"Currency stability requires rejecting the use of artificially pegging the hryvnia to the U.S. dollar as an anti-inflationary measure and moving to a flexible exchange rate dynamic within a currency corridor," the document says.

The president also talks about the importance of increasing the predictability of exchange rate dynamics by smoothening existing exchange rate fluctuations within a determined range after clarifying "significant changes" to the exchange rate. The president wants a gradual extension of the flexibility corridor on the basis of formalizing the rules for such expansion.