The IMF emphasizes the benefits of devaluing the hryvnia at a controlled pace as a step that could help strengthen Ukraine's strained finances by increasing budget revenues denominated in the local currency, reports Bloomberg, citing two sources familiar with the discussions."But officials with the National Bank of Ukraine are resisting such a move, citing risks to inflation and public sentiment," the sources told the publication on condition of anonymity, as the negotiations are taking place behind closed doors. "A rift on economic policy presents a potential risk as Ukraine seeks to secure a fresh loan package from the Washington-based lender, with Russia’s war stretching well into its fourth year. Ukraine has received most of the $15.6 billion from the IMF program negotiated in 2023, with the two sides now in talks for a new package that could total $8 billion," Bloomberg emphasizes. The talks continued during the lender's annual meetings in Washington this week, laying the groundwork for staff-level negotiations next month. Managing Director Kristalina Georgieva plans to visit Kyiv to express support and strengthen Ukraine's ambitions for additional financing.Why the NBU is against the devaluation of the hryvniaAccording to the sources, representatives of the National Bank are reluctant to yield to IMF pressure, citing potential harm to the economy. The projected benefits are limited, as Ukraine's budget is heavily dependent on direct international aid, they said, while devaluation could also trigger inflation that could wipe out the fiscal safety cushion.In addition, there will be political consequences. The Ukrainian authorities have long feared devaluation, and the public is sensitive to price fluctuations caused by financial crises preceding the war with Russia. As the war continues and fatigue grows, political leaders are reluctant to agree to such a step.In turn, the NBU declined to comment due to a quiet period before next week's interest rate decision. The IMF also declined to comment.The NBU and the exchange rateThe Central Bank of Ukraine suspended the floating exchange rate of the hryvnia against the dollar at the beginning of the full-scale invasion in February 2022, trying to prevent the hryvnia from falling as Russian troops began their invasion.After the IMF finalized an aid package two years ago, the National Bank allowed the exchange rate to fluctuate within a narrow range. Since then, the hryvnia has fallen by about 13% against the US dollar, Bloomberg concludes.As of October 1, 2025, Ukraine's international reserves, according to preliminary data, amount to $46.52 billion. In September, they increased by 1.1%.