Outlook for Ukraine's Currency Market

Not long ago, the Ukrainian government presented the draft budget for 2020. Despite the current dollar exchange rate, this indicator is significantly higher in the budget. Specifically, the Cabinet of Ministers set the dollar rate at 28.2.

At the same time, information immediately emerged that this is not a forecast. The currency exchange rates in Kharkiv are necessary to meet revenue targets.

But are these figures really so far from reality?

What awaits the hryvnia

Many have noticed that the hryvnia exchange rate has been highly volatile over the past few weeks. The national currency strengthens, only to fall unexpectedly. Speculators are profiting from this.

To profit from the exchange rate, it is enough to buy currency at the lowest price and sell it when the currency exchange rate in Kharkiv on the black market rises. For this purpose, there are exchange offices that allow you to reserve a rate for a specific period, usually limited, and subsequently exchange money at one of the branches.

First and foremost, this is “obmenka Kharkiv”. This is a cash currency exchange point. In other words, people sell and buy “live” money. Users have the opportunity to view the current rate on the website.

In the city of Kharkiv, the exchange office allows you to reserve a rate for up to 1 hour. This amount of time is sufficient to reach the exchange office from any point in the city. Given the prospects threatening the market, this could be very profitable.

In this way, you can buy currency in Kharkiv at the previous price, even when the rate has already risen significantly. The main thing is to do everything correctly.

As for the hryvnia exchange rate, the prospects are murky. Not long ago, Ukraine sold foreign currency-denominated government bonds at 20% per annum, and according to some data, even at 30% per annum. This is a huge figure. As of today, it is the highest in the world.

Thus, the government ensured an inflow of a large amount of currency. Investors from various countries were eager to invest in government bonds at such an attractive interest rate. This made it possible to significantly lower the dollar exchange rate and contributed to the strengthening of the hryvnia. As a result, the rate fell to 25 hryvnias per dollar. However, prices remained at the same level, and in some cases even increased.

What Ukrainians can expect in the currency market next year and what currency exchange in Kharkiv banks will be like – we will tell you in one of our upcoming articles.