policy and documents on cooperation with our partners. while the first stage of our program with the imf defined the key task as " maintain macroeconomic, external, and financial stability, in order to strengthen 3 / 4 bis - central bankers'speeches ukraine's capacity on its way to victory ", the second stage focuses on recovery and reconstruction. these words are mentioned in the memorandum with the imf more than 80 times. to achieve this, it is important to switch from anti - crisis measures to forward - looking and balanced policy. for this purpose, we moved from the fixed rate to er managed flexibility. we are cutting our policy rate. gradually, we are easing the fx market restrictions and moving towards our strategic objective : return to inflation targeting. we are returning to normality, and i remain hopeful that we will continue on this path, despite the ongoing war. strong economic recovery requires revival of lending. this is why we prepare our lending revival strategy taking into account war realities, including the need to boost the defense of the country. in conclusion, i would like to emphasize that ukrainian experience shows, that despite the fact that the mandate of a central bank is clearly defined, new challenges make us look for the new ways to fulfill it, and these ways may vary. and the most important insight from the two years of the full - scale war is that we, as central bankers, should learn to take a broader perspective. today it is the 716th day of war in ukraine. during this time, there were 978 air raid alerts in kyiv alone. the number and magnitude of challenges have grown, and their impact extends beyond ukraine. i am convinced, that everyone present at this conference would agree. full - scale, cruel, destructive war of russia against ukraine aggravated the risks of global war, geopolitical fragmentation and deglobalization. it has disrupted the " metabolism " of the financial system. this challenge is global, and a risk to global security and global macrofinancial stability, now and in the future. 4 / 4 bis - central bankers'speeches

. 1 / 4 bis - central bankers'speeches and so let me start out by outlining three key challenges facing central banks. the first is the aforementioned heightening of uncertainty. russia's war against ukraine, the unstable geopolitical situation, and global economic shocks are fueling sharp energy price fluctuations, supply chain disruptions, fx market pressures, and significant capital mobility. all of these require effective and strategic responses from central banks. the second key challenge comes in the form of the pressures on our financial systems. these include a growing debt burden, increased risks to the banking system, and capital outflows – and, again, all are significant threats to emerging markets. monetary policy must therefore continue to be flexible, but consistent in its aim to retain its credibility with businesses and households. the third key challenge is the limited effectiveness of conventional policy instruments. traditional approaches to policy implementation are inadequate for today's unprecedented challenges. strong supply - side shocks, when they materialize, expose this deficiency of monetary policy, as its capacity to affect them is limited. for this reason, emerging markets are particularly affected by the policies pursued by developed countries, which in turn raises even greater obstacles to conducting an effective independent monetary policy to ensure macroeconomic and financial stability. how should we respond to these challenges? we at the nbu have no silver bullets, but we do have experience to share. i will outline the stages through which ukraine's monetary policy has evolved amid the war. i hope this adds an important element to the discussions and provides inspiration. in the earliest months of russia's invasion, the nbu was forced to take stringent anticrisis measures. these included an exchange rate peg, fx restrictions, and financing the government. all this was done to minimize panic and keep the economy afloat. but the nbu quickly realized that these were not sustainable, long - term solutions. so, as soon as the initial shocks of the war subsided, and the proper prerequisites were in place, the nbu began to move back towards a more balanced and predictable policy. first, we introduced a set of measures to enhance the impact of the key policy rate. this was done by modifying reserve requirements and the operational design of interest rate policy. when more prerequisites were met, we switched to a policy of managed flexibility of the exchange rate. and in 2024, we were able to introduce flexible inflation targeting as an intermediate monetary regime. using this approach, the