Ukrainian National Bank Governor Andriy Pyshniy says the bank has settled its "open conflict" with the government and will avoid the "very dangerous" practice of printing new money to fund the war effort.
Pyshniy told the Financial Times in an interview published on March 26 that the loose monetary policy had "created huge risks for macroeconomic stability" and the national currency, the hryvnya.
"It was a quick remedy, but very dangerous," he told the newspaper.
Experts have expressed fear of hyperinflation to compound woes in Ukraine amid the year-old war, particularly as the National Bank printed money as EU aid was delayed and the Finance Ministry opposed domestic paths to raise revenues.
Last week, the International Monetary Fund (IMF) and the Ukrainian government agreed on a nearly $16 billion loan that still requires IMF board approval.
Pyshniy took over Ukraine's National Bank in October after Kyrylo Shevchenko resigned abruptly amid suspicions of millions of dollars of embezzlement.
Ukrainian Prime Minister Denys Shmyhal said after meetings with IMF Director-General Kristalina Georgieva in February that the sides had reached a preliminary agreement on a program that would include immediate financial help and support for longer-term structural reforms to aid rebuilding after the war.
