Official dollar rate in Ukraine exceeds 45 hryvnia, setting new record

Official dollar rate in Ukraine exceeds 45 hryvnia, setting new record
Official dollar rate in Ukraine exceeds 45 hryvnia, setting new record

Hryvnia loses value: new rate record

The National Bank of Ukraine has recorded further weakening of the national currency. Thus, on 14 October, the regulator set the official dollar rate at 45.0802 UAH. This figure became a new all-time high. The previous record was set on the board just a week ago, on 6 October, when the rate stood at 45.0564 UAH for the US currency.

Causes of the dollar's rise

Experts link the increase in the dollar rate to the need to cover the state budget deficit. To do this, they use the more favourable conversion of international financial aid. As a result of September, the NBU's gold and foreign exchange reserves decreased by 3.2%, reaching the mark of $47.1 billion.

An additional factor pressuring the hryvnia was the general weakening of the euro in the global market. If yesterday the euro/dollar pair rate rose above 1.12, today it fell again to 1.1173.

France's financial problems affect the euro

The main cause of the European currency's decline is considered to be the accelerated sale of French government bonds. Investors are increasingly doubting the long-term stability of France's financial system. Since Emmanuel Macron came to power in May 2017, the country's state spending has increased, and large-scale tax relief has led to an increase in state debt by more than 1 trillion euros (1.12 trillion). The budget deficit level reached 5.8% of GDP.

Forecasts regarding interest rates

The European Central Bank, according to analyst forecasts, will not raise rates in October. Most experts expect the range of 2.5–2.9% to be maintained. Meanwhile, the US Fed rate remains at 4%, making dollar assets more attractive to investors.

Rates in Ukrainian banks

Today, the National Bank also raised the official hryvnia rate against the euro: from 50.2418 to 50.4380 UAH per euro.

In Ukrainian banks, the maximum cash dollar selling price reached 45.6 UAH/$, while the average spread remained within the range of 44.77–45.31 UAH/$.

Regarding the euro, average buying and selling rates at cash desks were 50.22–50.89 UAH per euro, and the maximum selling price reached 51.1 UAH/€.

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