Dollar gets cheaper as Ukraine's National Bank adopts flexible exchange rate
Dollar gets cheaper as Ukraine's National Bank adopts flexible exchange rate (Vitalii Nosach, RBC-Ukraine)
The National Bank of Ukraine (NBU) has lowered the exchange rate of the dollar to the hryvnia for the first time since transitioning to a flexible exchange rate regime. The rate has dropped by 4 kopecks, but it has not yet reached its previous level, according to NBU's website.
The official exchange rate of the hryvnia to the dollar on October 9, 2023, is set at the following level: 36.5827 hryvnias per 1 dollar (-0.0389 hryvnias).
bank.gov.ua
The euro exchange rate will be 38.6533 hryvnias per 1 euro (+0.1127 hryvnias).
bank.gov.ua
On the interbank market today, October 6, the rate has dropped by 2 kopecks to 36.57-36.59 hryvnias per dollar (buying-selling).
udinform.com
On the cash market, the rate has stabilized at 38.20 hryvnias per dollar.
New NBU exchange rate
On October 3, the NBU introduced a managed flexible exchange rate regime, which led to increased demand for currency in the interbank market and a jump in the cash dollar exchange rate.
However, later, demand in the interbank market decreased, and the cash dollar rate started to decline.
As NBU chief Andrii Pyshnyi stated, the new policy does not mean that the hryvnia will constantly drop. "The term 'managed exchange rate flexibility' does not equal 'permanent devaluation,'" he said.
According to him, in order for the exchange rate to move in both directions, the NBU will cover the structural currency deficit in the market. "Any fluctuations in the exchange rate, either weakening or strengthening, will be strictly limited," the head of the NBU added.
