• 18/04/2024 02:35

Why is the exchange rate growing in Ukraine: the former head of the NBU Council named the main prerequisites for the devaluation of the hryvnia

ByJohn Newman

Mar 28, 2024

As of Thursday, March 28, the NBU set the official exchange rate at 39.22 hryvnia/dollar (decreased slightly) and 42.44 hryvnia/euro (also dropped in value).

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Why is the exchange rate rising in Ukraine: the former head of the NBU Council named the main prerequisites for the devaluation of the hryvnia

Photo – pexels. com

About why the domestic foreign exchange market of Ukraine has seen a rapid rise in the price of major currencies in recent weeks, writes NBN, citing an explanation published on the Facebook account of the former head of the National Council Bank of Ukraine (NBU) Bohdan Danylyshyn.

In particular, over the past 2 weeks, the hryvnia has dipped:

  • relative to the American currency—by about 2.9&nbsp ;percent;
  • relative to the European currency by 1.9 percent.

According to Danylyshyn, such market volatility of the dollar/euro exchange rate was due to factors in which the cash sector of the market urgently responded to the “interbank”, where the key actions affecting the exchange rate remain decisive – the pace of interventions of the regulatory bank on the sale of the dollar and the euro, and also the fact that the NBU decided ” hold back” gold and foreign exchange reserves.

In addition, the “situational-psychological” factor, in particular, the current unfavorable situation on the battlefield (offensive of Putin's army) had a negative impact on the stability of the currency situation in Ukraine. and a lot of complications with border crossing, including the blockade of checkpoints by the Poles.

Earlier, we wrote about the fact that the NBU intends to “untie” the national currency from the dollar.

nbnews.com.ua

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