In Ukraine, the appreciation of the euro correlates with the trend in the world markets, as the NBU rate is adjusted only in the euro-dollar exchange rate.
The official euro rate in Ukraine exceeded 40 hryvnia for the first time. Therefore, on Thursday, February 2, the Central Bank fixed it at UAH 40.17 per euro, according to the regulator’s data.
Before the full-scale war, the official euro exchange rate in Ukraine was 32.90 hryvnia. But on February 24, 2022, after the entry of Russian troops into the territory of Ukraine, the Central Bank decided to fix the hryvnia exchange rate at 33.1707 UAH against the euro. But on March 23, the regulator returned the euro’s floating rate.
Note that in 2022 the euro has been depreciating against the dollar for several months. In July, US Treasury Secretary Janet Yellen announced to Reuters reporters that the dollar strengthened against world currencies due to strong economic growth, actions by the Federal Reserve to raise interest rates and capital inflows. However, towards the end of the year, the situation changed: the euro gradually rose against the dollar due to different interest rate hikes by the US Federal Reserve and the European Central Bank.
Thus, in Ukraine, the increase in the euro exchange rate correlates with the trend in world markets, since the NBU rate is determined only by the euro-dollar rate and does not depend on the domestic situation.
What will be the exchange rate in Ukrainian banks?
According to the Ministry of Finance, euros will be available at the following exchange rates as of the evening of February 2 at large banks in Ukraine:
- PrivatBank — 43.5 UAH/EUR;
- Oschadbank — UAH 43.8/EUR;
- Raiffeisen Bank — UAH 43.8/EUR;
- Ukrgasbank — 43.4 UAH/EUR
- Credit Agricole Bank — 40.7 UAH/EUR
- FUIB — 44.1 UAH/EUR.
Previously Focus I have already said that 2023 will not be easy for the Ukrainian economy and that the development scenarios are directly dependent on the events on the front. In the meantime, there are hopes for the situation to stabilize and for the recovery to begin.
We also remember that in 2022, individuals in Ukraine sold foreign currency for 14,461.4 million dollars and bought them for 15,341.5 million dollars.
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.