The National Bank has set the highest exchange rate in Ukraine’s history

The National Bank of Ukraine has set the official exchange rate of the hryvnia against the dollar above 37 hryvnia/$ for the first time in history, precisely at 37.0245 hryvnia/$. This constitutes the highest devaluation officially declared by the NBU.

The decrease in the non-cash hryvnia has been a consistent trend since the start of December, with a significant drop observed this week. On December 13th, trading on the Bloomberg platform initiated at 37.017 hryvnia/$, later climbing to 37.025 hryvnia/$ by 11 a.m., and all transactions were executed at this rate. The total trading volume reached $220.5 million. The National Bank remains the primary supplier, accounting for 75-80% of dollar supplies.

Analysts suggest that concerns about potential aid from the U.S. to Ukraine, possible EU assistance and the distribution of funds from frozen Russian assets, along with the country’s capability to cover deficits via its reserves, have possibly prompted this decision to devalue the hryvnia. The black market briefly saw a rise on December 13th: starting the day at a selling rate of 37.78 hryvnia/$ and rising to 37.96 hryvnia/$ by 3 p.m., only to decrease to 37.66 hryvnia/$ by evening.