For the first time since February 24, the National Bank of Ukraine raised the official exchange rate of the hryvnia to the US dollar – by 25% to UAH 36.5686/dollar.
KYIV. UkraineGate. 21. July . 2022 | Economy .
Quote
“From 9:00 a.m. on July 21, 2022, the National Bank of Ukraine adjusted the official exchange rate of the hryvnia to the US dollar by 25% to 36.5686 hryvnias/US dollar in view of the change in the fundamental characteristics of the Ukrainian economy during the war and the strengthening of the US dollar against other currencies” , the message says.
Details
Such a step, the NBU expects, will make it possible to increase the competitiveness of Ukrainian manufacturers, bring exchange rates closer to different groups of businesses and the population, and support the stability of the economy in wartime conditions.
The official exchange rate of the hryvnia to the US dollar will continue to be fixed , the NBU emphasized.
According to the National Bank’s estimates, the correction of the exchange rate will increase the inflow and, accordingly, the sale of foreign exchange earnings by exporters, minimize the speculative component of the behavior of market participants and make it possible to stabilize exchange rate expectations.
“The correction of the official exchange rate of the hryvnia will have only a limited effect on the acceleration of the rate of price growth, caused in recent months primarily by the consequences of the war for the supply of goods and services and the cost of logistics, as well as the dynamics of prices on world commodity markets. Instead, fixing the official exchange rate at a new, more stable level will enable the NBU maintain control over price dynamics in Ukraine,” the NBU noted.
The conditions for setting the rate of sale and purchase of currency in the cash and non-cash market segments remain unchanged. The sale and purchase of foreign currency by banks at the request of clients in the non-cash segment of the foreign exchange market will continue to be carried out at a rate that cannot deviate by more than 1% from the official rate. The rate of sale of currency in the cash segment of the foreign exchange market will continue to be determined by supply and demand, the regulator added.
Addition
As of May 21, the National Bank canceled restrictions on the currency sale rate for banks.
Source: Ukrgate
