KIEV, Oct. 18 – There are economic grounds for strengthening the hryvnia, although the economy's reaction to such a move should be taken into account when setting policy, said National Bank of Ukraine Chairman Volodymyr Stelmakh.

He said that officially he agreed that the Ukrainian hryvnia is undervalued.

"In order to set a realistic and optimal currency exchange rate, we should see how it would impact the economic sectors," he said.