The banknotes coming from the market are transferred to the NBU’s vaults for a “sanitizing quarantine.” Banks are receiving banknotes that were stored in NBU vaults before the pandemic hit Ukraine. We have enough cash to support the economy. What’s next?
The Ukrainian economy entered the COVID-19 crisis in a much better state than in 2008 and 2014 crises, with moderate inflation, an effective floating-rate policy and currency liberalization, a low deficit of the current account, sizeable international reserves, a prudent fiscal policy, and a reformed banking sector, which used to be a catalyst in previous crises.