Abstract: The article provides an analysis of the dynamics of changes in the monetary policy of modern Ukraine. The importance of inflation targeting in the history of Ukraine is global and significant. At this stage, Ukraine uses a managed exchange rate flexibility regime, which is a direct descendant of the exchange rate targeting regime, but this solution is only temporary. In the future, it is the regime built on inflation that will play a key role in the development of a prosperous Ukraine, being the main policy of the National Bank of Ukraine, but the significance of this process is somewhat lost against the background of the country’s socio-economic transformations, which only emphasizes the significance of this analysis.

The return to this regime must be gradual and with the rejection of the exchange rate fixation, even in a flexible form, which seems impossible today. Despite this, such a refusal is part of the central bank’s strategy, so it is extremely important to focus attention and analyze such a transition.

The article identifies trends that need to be adjusted for a successful return to the course. A key element of this process should be the gradual reduction of currency interventions, which will provide an opportunity to weaken the exchange rate and allow the market to adapt more gradually under conditions of constant monitoring of the situation by the country’s central bank. Despite the significant potential weakening of the hryvnia in relation to other foreign currencies, this approach will eliminate the possibility of a shock effect, when interventions will cease to be carried out due to the depletion of reserves, which could potentially provoke an inflationary surge in the future, if the market pricing of the hryvnia at the maximum permissible level is not ensured. Careful, soft, but strengthened communication from the central bank will also be an important element. It is not enough to emphasize the inevitability of a return to inflation targeting, it is important to emphasize the devastating consequences in the event of depletion of reserves and possible weakening of international aid in conditions of general volatility and economic instability. At the same time, it is necessary to build up reserves, as well as stimulate commercial banks to attract long-term deposits, which in turn will curb potential inflationary risks.

Only under the condition of concerted and determined work of the National Bank of Ukraine, it will be possible to ensure the potential for effective management of Ukraine in the context of returning to the inflation targeting regime, and thus to the return of stability in the long-term dimension.