The World Bank approves the economic policy of the Ukrainian government, the manager director of World Bank Ngozi Okonjo-Iweala reported after her meetings with Ukrainian President Viktor Yuschenko and Prime Minister Yulia Tymoshenko.

"We have discussed the economic situation of Ukraine. The Ukrainian government is using tough fiscal approaches to settle the situation. The government is making steps in the right direction. Everyone understands that inflation can be a serious problem," she said at a press conference in Kyiv on Monday.

She further added the World Bank gave the recommendations to the government use a more flexible currency exchange policy.

"We also offered the government to pay attention to prudent monetary policy. We also believe a more flexible treatment of the hryvnya exchange rate could be an instrument to struggle inflation," she proclaimed.