NBU fixed the official exchange rate of hryvnia against the U.S. dollar at a new level

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The National Bank of Ukraine has adjusted the official exchange rate of the hryvnia against the US dollar by 25% to 36.5686 UAH/USD from 9:00 a.m. on July 21, 2022. The National Bank of Ukraine adjusted the official UAH/USD exchange rate 25% to UAH 36.5686/USD to reflect changes in the fundamental characteristics of the Ukrainian economy during the war and the strengthening of the USD against other currencies. Such a step will increase the competitiveness of Ukrainian manufacturers, reconcile exchange rate conditions for different groups of businesses and households, and maintain the stability of the economy during the war.

The official exchange rate of the hryvnia to the US dollar continues to be fixed. Given the high uncertainty caused by the war, the fixed official exchange rate against the US dollar is the main anchor of stabilizing expectations and a key means of meeting the NBU's priority objectives. They consist of ensuring price and financial stability, which is an important condition for economic recovery.

"Fixing the hryvnia exchange rate at 29.25 hryvnia to $1. At the beginning of the war helped to ensure stable operation of the financial system. The exchange rate fixing mechanism is a stabilizer of the economy in the current environment. The war has lasted almost five months, during which considerable changes took place in our and the world economy. Under such conditions, the official exchange rate of the hryvnia at the level of February 24 no longer meets the realities and is gradually losing its role as an anchor for expectations.

With this in mind, the National Bank carries out a one-time correction of the official exchange rate of the hryvnia to the US dollar and fixes it at 36.5686 UAH/USD. U.S. DOLLAR. The new exchange rate level will anchor the economy and give it stability in conditions of uncertainty. The continuation of the fixed exchange rate policy will allow the National Bank to maintain control over the dynamics of inflation, as well as keep the financial system running smoothly. This is a key prerequisite for the stable functioning of the economy, which is vitally important in times of war", - NBU head Kyrylo Shevchenko stressed.

Details on the link: bank.gov.ua