%. prices for grains and iron ore remained almost unchanged. uncertainty over the spread of the novel coronavirus, and stronger turbulence on financial and commodity markets saw the ukrainian fx market respond with deteriorated sentiment and 1 / 3 bis central bankers'speeches increased nervousness. this has led to a sizeable increase in demand for foreign currency, which exceeded the supply, starting last week. the nbu has been active on the interbank foreign exchange market since last week in order to smooth out large fluctuations of the exchange rate. this week alone, net fx sales by the nbu reached usd 700 million, and the central bank is ready to conduct more fx interventions if necessary. despite the fact that the psychological factor is the only reason for the fx market turmoil, it poses a risk of a deterioration in inflation expectations, which can later affect consumer prices. although so far the global spread of the novel coronavirus has had little effect on economic growth and inflation in ukraine, the nbu will most probably have to revise its macroeconomic forecasts in april. after all, the following consequences of the spread of the coronavirus have not yet impacted economic activity and inflation in ukraine : the downward pressure on prices and a cooling of the global economy monetary policy easing by central banks of the leading economies and ukraine ’ s trading partners in response to these processes measures taken by governments to prevent the spread of covid - 19. apart from the drop in global prices caused by the coronavirus, disinflation in ukraine will be driven by the recent rise in competition between crude oil producers. this will keep energy prices at record lows, which will also impact prices for ukrainian exports. overall, the effect of all these factors on economic growth and inflation in ukraine will be mixed, adding to the uncertainty. what other factors did the nbu consider when making its monetary policy decision today? the nbu board continued to rely on the key assumption that cooperation with the imf will continue. signing a new agreement with the imf will make the ukrainian economy less vulnerable in a time of turbulent global markets and during a period of heavy public debt repayments. investors ’ perception of ukraine will also depend on ukrainian court rulings on the responsibility and liabilities to the state of the former owners of insolvent banks. the risk arising from the global spread of the novel coronavirus could, if realized, drive the global economy into a recession and cause a significant slowdown in the ukrainian economy. a dramatic decline in global demand and investors

truly matter, then our enthusiasm for it will naturally increase. my dear colleagues! this year will be a more difficult time than ever before. we have already successfully overcome great hardships in the past, however, such as the foreign exchange crisis of 1997 and the recent global financial crisis, and in doing so i am proud to say that the bank of korea played a substantial role. if on top of your superb capabilities and talent your work attitude is also newly strengthened, then there is no doubt that we will be able to contribute greatly to helping our korean economy overcome its current difficulties and take another step forward. in welcoming the new year, i wish all of you in our bank of korea family very abundant health and happiness. thank you. bis central bankers ’ speeches