The National Bank of Ukraine Sets a New Official Exchange Rate
The National Bank of Ukraine (NBU) has announced a new official exchange rate of 36.5686 hryvnia per dollar. This adjustment represents a 25% devaluation against the dollar compared with the official cross-rate that Ukraine has maintained since the early days of the current conflict. The central bank framed the move as a necessary step to safeguard the country’s foreign currency reserves, a priority amid ongoing economic pressure caused by the war. This rate adjustment signals a recalibration of the currency framework in response to shifting market dynamics and heightened uncertainty, while the bank emphasizes its commitment to financial stability.
In making its decision, the NBU underscored changes in the core indicators shaping Ukraine’s currency during wartime. The shift in the exchange rate is described as a move to improve competitiveness for Ukrainian producers, align conditions for different business and household groups, and bolster the economy’s resilience in the face of wartime challenges. The central bank communicates that the adjustment aims to unify exchange rate conditions across sectors, reducing fragmentation and smoothing out price signals for businesses and families alike. This approach is presented as a means to support a stable macroeconomic environment despite elevated risk. [Source: National Bank of Ukraine]
The bank reiterates its strategy of anchoring expectations through a fixed exchange rate with the dollar during periods of significant uncertainty. Officials describe the fixed-rate regime as a primary anchor that helps stabilize prices and financial conditions, supporting the NBU’s main goals of maintaining financial stability and price stability amid disruption. The narrative positions the rate fix as a stabilizing force, helping to preserve confidence among investors, creditors, and the general public during wartime shocks.
With international reserves described as sufficient to sustain rate stability, the NBU points to the prospect of international financial assistance, the gradual establishment of export logistics, and rising exporters’ foreign currency inflows as factors that could ease demand pressure. The bank anticipates that these developments, alongside the shift in the exchange rate, will dampen speculative behavior and align market expectations more closely with the new currency framework. The overall message is that the rate adjustment, coupled with prudent macroeconomic management, can support economic activity and export performance in challenging times.
In remarks about the broader impact, the NBU President Kyrylo Shevchenko stated that the fixed-rate mechanism serves as the economy’s stabilizer under current conditions. The new exchange rate level is described as an anchor intended to strengthen resilience against uncertainty and help the financial system function smoothly. This framing highlights the central bank’s intention to balance inflation control with the need to maintain orderly exchange and payment systems during the war. [Source: National Bank of Ukraine]
The President emphasized that it is the NBU’s responsibility to maintain exchange-rate stability, monitor dynamics, and sustain the functioning of the financial sector. The aim is to support inflation control and ensure ongoing monetary coordination, a foundational prerequisite for a stable economy during wartime. He stressed that the measures taken are part of a temporary response to extraordinary conditions, designed to shield households and businesses from abrupt financial shocks while the war persists.
Additionally, the central bank projects that the exchange-rate adjustment will attract higher foreign currency inflows as exporters convert earnings, a development that should narrow speculative gaps and stabilize expectations. By aligning incentives toward real export performance and securing currency supply for essential needs, the NBU seeks to prevent abrupt swings in prices and to foster a more predictable operating environment for firms and consumers alike. This is framed as a forward-looking policy move, aligning with the broader objective of preserving macroeconomic stability during the conflict.
The government and the central bank also signaled that further measures may be introduced to balance supply and demand in the foreign exchange market. One stated aim involves minimizing the use of international reserves for non-priority expenditures during wartime, ensuring resources are reserved for critical needs and stabilization efforts. The Bank notes that all wartime restrictions introduced at the outset were intended as temporary and subject to reassessment as the situation evolves, with the overarching goal of maintaining orderly markets and confidence in the monetary framework.
The NBU continues to monitor exchange-rate stability closely and to employ the necessary tools to keep the foreign-exchange market orderly. Officials reiterate that restrictions implemented at the start of the war were meant to be temporary measures and would be adjusted as conditions change. The central bank’s ongoing vigilance reflects a broader commitment to preserving financial stability, preserving the integrity of the currency, and supporting the overall resilience of Ukraine’s economy during the crisis. [Source: National Bank of Ukraine]
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