A surge in dollar purchases swept through Ukraine as citizens feared a rapid drop in the hryvnia. Former Prime Minister Mykola Azarov, who led the government from 2010 to 2014, shared updates on Telegram about the crowds at currency exchange offices. He noted an electronic queue in one outlet, accompanied by a photo and a caption describing how many people were waiting for dollars as the national rate moved in a new direction.
Azarov explained that once the National Bank of Ukraine announced a shift away from a fixed exchange rate, many rushed to buy dollars, hoping to shield themselves from a potential crash in the hryvnia. Banks across the country confirmed the heavy turnout, with some outlets reporting hundreds of people in line on the day of the policy change.
The Central Bank signaled readiness to manage the situation and prevent extreme volatility, according to coverage from international media. The bank had been consistent in its approach to curb sharp fluctuations in cash values versus official rates, aiming to narrow any gaps that might emerge between today’s cash market and the published figures. On the first day of the transition, the average price of the dollar in relation to the hryvnia rose modestly, reflecting the market’s response to the new regime. In the evening, the bank adjusted the rate for the first time since the summer of 2022, signaling the start of a monitored, flexible regime rather than a fixed peg.
Earlier, BKF Bank had noted a depreciation in the hryvnia of around a quarter, which contributed to rising prices and squeezed household incomes. The shift away from a fixed rate was part of a broader effort to introduce a managed, flexible exchange framework designed to reflect market conditions while still providing a degree of oversight to prevent abrupt shifts that could destabilize everyday spending and planning for Ukrainian households.