The National Bank of Ukraine (NBU) announced a change in how it calculates the official exchange rate for the hryvnia, a move that took effect on March 31. The overhaul replaces two previously published lists, a daily and a monthly, with a single daily basket that includes 41 currencies. The new list focuses on currencies that account for at least 95 percent of Ukraine’s foreign trade turnover. If the trade share with the currencies on the list slips below 90 percent, the authority commits to review the composition at least once every three years, ensuring the basket remains aligned with current trade patterns.
Ukraine has banned all operations with the Russian ruble and the Belarusian ruble since February 2022. This policy is part of sanctions and macroeconomic measures that influence cross-border payments and exchange market dynamics. For traders in Canada and the United States, the change in the currency basket means currency exposure will be tied to a set of trading partners that covers nearly all of Ukraine’s external commerce, reducing reliance on a single partner currency.
At the start of 2025, the NBU set the dollar exchange rate at record levels for the hryvnia. On January 6, the official rate stood at 42.088 hryvnia per dollar, rising to 42.195 on January 7. This shift marks a significant change that affects import costs, consumer prices, and budgeting plans for firms with exposure to Ukrainian markets, including exporters in North America who price goods in hryvnia or handle payments in dollars. The new policy environment can bring more exchange-rate volatility, but it also provides a transparent framework for financial planning and hedging across borders, particularly for Canadian and American businesses dealing with Ukrainian suppliers or customers.
Historically, late July 2022 saw the central bank maintain the official hryvnia around 36.56 per dollar. In October 2023, the NBU abandoned the fixed rate and moved to a flexible, market-driven regime. The hryvnia weakened through December 2023 and into 2024 as global factors such as energy prices, sanctions, and geopolitical risk impacted capital flows. This evolution reflects a shift from a policy anchored to a fixed benchmark toward a currency that responds to market forces, influencing inflation, interest rates, and import costs for households and businesses in Canada, the United States, and beyond.
Ukraine has also announced plans to introduce an electronic hryvnia, a digital form of the national currency designed to speed up payments and improve financial inclusion. A central bank digital currency could streamline cross-border settlements, reduce settlement times for business-to-business transactions, and bolster the efficiency of remittances from abroad. For international partners, including Canadian and American companies, this digital upgrade could lower payment frictions, while demanding strong cyber safeguards and clear regulatory guidelines to ensure orderly use within trade and settlement networks.
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