even more tangible : 1 / 6 bis - central bankers'speeches people want our work and decisions to be an island of stability in the middle of a storm that keeps raging. our observations have been confirmed by banque de france's governor francois villeroy de galhau, who said, " the credibility of central banks and their resolute course of action have a consequence : they are fueling growing public expectations. " there is a direct relationship : the more effective the policy that a central bank pursues and the higher its credibility, the more people expect from the central bank's decisions. this is what unites us with other central banks. they also deal with expectations. central banks in different countries may have differently worded their statutory mandates, but each central bank directs its efforts toward shaping and managing expectations and maintaining trust, which is a key aspect of ensuring the effectiveness of central bank policy. we have some insights that i will share, but we certainly do not have all the answers. so, today we will look for answers together, and the first question is : how to maintain a central bank's credibility amid high uncertainty while undergoing a dramatic transformation? despite the tremendous experience the nbu has gained, as the war wears on, uncertainty is constantly generating new challenges. challenges for us. challenges for the whole world. the echoes of the storm that started in ukraine can be felt now both on the european continent and across the ocean. the war has already affected global food security, migration flows, and redistribution of budgets in favor of military spending. the war is affecting logistical and production capabilities, encouraging tighter border control on land and water and in cyberspace. the war is being reflected by slowing rates of economic growth and rising global inflationary pressures. the world is highly interconnected through trade, financial, and geopolitical networks. as a result, we are seeing that big shocks can have avery different asymmetric and nonlinear effects due to complex interrelated economies and rapidly worsening expectations. and under the laws of perfect storm, the worst - case scenario can happen... hence question two : are central banks ready to face the challenges of war if it comes close to their countries'borders? the nbu's experience proves that conventional approaches and tools are no longer enough to effectively implement the central bank mandate. and in some cases, new 2 / 6 bis - central bankers'speeches challenges dictate the need to change not only the approaches, but the very

philosophy of central banking. since the war's onset, we have accumulated a unique base of knowledge and solutions that has proved effective amid high uncertainty. over this time, the financial sector and the economy have gone from survival and adjustment stages to gradual recovery. along with solutions, we have also developed several insights that i expect you and i will augment during the panels today. 1. central banks should prepare for crises. in emergencies, we do not rise to the level of our expectations, we fall to the level of our preparedness. the idea of crisis preparedness is nothing new. it lies at the core of ensuring financial stability, which became a widespread part of central banks'mandates after the asian market crisis and was cemented as such by the 2007 – 2008 global financial crisis. in essence, crisis preparedness involves creating a system of buffers and an early warning system that operate on the principle " prepare today for what may come tomorrow. " central banks should not be afraid to take into account the relevant experience from different cases. the nbu started preparing immediately after russia annexed crimea in 2014. thanks to prearranged action protocols and a package of anti - crisis measures put into effect on 24 february 2022, we were able to stabilize the situation. we managed to prevent panic, stem capital outflows, and help the country fight and defend its independence. we pegged the exchange rate to the u. s. dollar and imposed administrative restrictions on fx transactions and cross - border movement of capital. we activated the banking system's business continuity protocols. have you ever heard of any countries where people could easily use payment cards amid a full - scale war, even on its first day? i know of only one such country. ukraine. not a single payment was denied, not a single ukrainian bank stopped operating. people had uninterrupted access to their money and continued to keep their deposits in banks. we supported the country's budget by issuing uah 400 billion in monetary financing as ukraine waited for financial support from partners. we did it because the defense forces needed immediate funding. a tactical medicine phrase i often use to explain the essence and importance of crisis response is very apt. in the event of severe injury ( which is how you can describe the invasion's impact on the ukrainian economy ), compress the damaged blood vessels with a tourniquet to stop the bleeding as soon as possible. our emergency measures became such a tourniquet for the financial system