• 15/07/2024 16:50

Depreciation of the hryvnia and inflation in Ukraine: the NBU commented on the unstable situation in the foreign exchange market

ByJohn Newman

Mar 21, 2024

As of Thursday, March 21, the National Bank updated the official dollar exchange rate to 39.1399 hryvnia/unit (in January of this year, the US currency cost no more than 38 hryvnia per unit).

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The depreciation of the hryvnia and inflation in Ukraine: the NBU commented on the unstable situation in the foreign exchange market

Photo – minfin.com.ua

The bank-regulator sees no reason for concern, since such currency exchange rate fluctuations are based on the dynamics of supply/demand, writes NBN, referring to  explanation by Deputy Head of the NBU Sergei Nikolaychuk, sounded on the YouTube channel “Forbes.Ukraine”.

According to Nikolaychuk, the situation on the domestic foreign exchange market remains quite controlled, however, some deviations in the exchange rate of the American currency are likely , both in the upward direction and in the downward direction.

The Deputy Head of the NBU added that now the above-described dynamics of demand/supply, according to the experts of the bank-regulator, absolutely coincide with the goals relating to ” ensuring the attractiveness of the hryvnia,” even taking into account the current inflation rate and its projected level.

Nikolaychuk emphasized, letting slip that “it’s time to tighten our belts”:

Also, these dynamics do not raise our goal of keeping inflation at a relatively low level this year.

We previously wrote about that the banker predicted a noticeable fluctuations in the hryvnia exchange rate this week.

nbnews.com.ua

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