Central bank officials have said they will work out a new mechanism to set the hryvnia's rate, aimed at reducing the discrepancy between the various levels which grew sharply as the currency plunged to a historic low last week on the interbank market.
"We agreed that this week the central bank will formulate a single rate for the interbank market, cash market and the official rate. All the rates will be brought into a single rate," Yushchenko said in a statement on his Web site.
The hryvnia fell sharply in the past month as investors rushed to convert Ukrainian assets into dollars, and slowing exports reduced the supply of greenbacks to buy on the market. It hit an all-time low of 7.2/$ last week.
As it became clear that the global financial crisis would have an impact on Ukraine's economy, authorities turned to the International Monetary Fund and pencilled an initial agreement for a $16.5 billion loan.
A government memorandum published by local media showed the the central bank promising the IMF to limit the difference between the official and market rates to 2 percent, a move which analysts said would enforce greater currency flexibility.
For three years, the central bank intervened on the interbank to keep the currency at 5.0-5.06/$ within a wider corridor of 4.95-5.25. It dropped that rule this year, allowing the hryvnia to strengthen to as much as 4.5/$.
On Monday, the hryvnia was trading at 5.84-5.87 to the dollar. The central bank offered to trade dollars at 5.80-5.85 hryvnias and, for the first time, euros at 7.40-7.46 hryvnias.
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