NBU sets official hryvnia exchange rate at 36.56 per U.S. dollar

On July 21, the National Bank of Ukraine (NBU) changed the official exchange rate of the hryvnia against the U.S. dollar by 25%, to UAH 36.5686 per U.S. dollar, according to the central bank’s press service.

"The National Bank of Ukraine has changed the official exchange rate of the hryvnia against the U.S. dollar by 25%, to UAH 36.5686 per dollar, effective 09:00 July 21, 2022, in view of the change in fundamental parameters of Ukraine's economy during the war and the strengthening of the U.S. dollar against other currencies," the report reads.

It is noted that the official exchange rate of the hryvnia will remain fixed at the new level.

The central bank explains that the official exchange rate of the hryvnia fixed as of 24 February at the level of UAH 29.25 per U.S. dollar lost its relevance and has gradually stopped being the expectations anchor. At the same time, the NBU expects the new exchange rate will add stability to the Ukrainian economy in conditions of uncertainty and keeping the exchange rate fixed will enable the NBU to maintain control over inflation dynamics and support uninterrupted functioning of the financial system.

The NBU estimates changing the exchange rate will raise inflows – and thus sales – of foreign currency revenues by exporters, minimize the speculative behavior of market participants, and allow stabilizing exchange rate expectations.

Instead, according to the regulator, fixing the official rate at a new, more stable level will allow the NBU to keep price developments in Ukraine under control.

The NBU also stresses that no changes will be introduced in setting the bid and ask rates for foreign currencies in the cash and cashless segments of the market.