The National Bank of Ukraine from 9:00 on July 21, 2022 set a new official hryvnia exchange rate against the US dollar. The NBU exchange rate increased by 25% to UAH 36.5686/USD. USA. This correction was made taking into account the change in the fundamental characteristics of the Ukrainian economy during the war and the strengthening of the US dollar against other currencies.
It is noted that the official exchange rate of the hryvnia against the US dollar continues to be fixed. However, the exchange rate correction will increase the competitiveness of Ukrainian producers, bring exchange rate conditions closer for different business groups and the population, and maintain the stability of the economy in the conditions of war. Such a move will be positively assessed by business representatives, including sole proprietors, who receive income from abroad in dollars and were forced to sell the currency at an official fixed rate that did not correspond to the market one.
“The new level of the exchange rate will become an anchor for the economy and give it stability in the face of uncertainty. The continuation of the fixed rate policy will allow the National Bank to maintain control over inflation dynamics, as well as maintain the smooth operation of the financial system,” said NBU Governor Kirill Shevchenko.
According to the NBU, the exchange rate correction will increase the inflow and, accordingly, the sale of foreign exchange earnings by exporters, as well as minimize the speculative component of the behavior of market participants and stabilize exchange rate expectations.
At the same time, the correction of the official exchange rate should have a limited effect on accelerating the rate of price growth. These processes in recent months are primarily due to the consequences of the war for the supply of goods and services and the cost of logistics, as well as price dynamics in world commodity markets.
Well
Python evening
Learn how to program Python in a course with guaranteed training
REGISTER!
The conditions for setting the rate of sale and purchase of currency in the cash and non-cash market segments remain unchanged.
The NBU also introduces other changes in the foreign exchange market from July 21, 2022:
- banks will be able to sell non-cash currency to citizens with subsequent placement on deposit for a period of 3 calendar months without the right to early termination within the monthly limit of UAH 50,000 (equivalent). This will create an alternative to investing in cash, which will reduce the demand for it and pressure on the exchange rate in the cash segment.
- citizens will still be able to withdraw UAH 50,000 (equivalent) per month from hryvnia payment cards abroad. At the same time, the limit on withdrawing cash from hryvnia payment cards abroad was changed from monthly to weekly: UAH 12.5 thousand (equivalent) for seven calendar days;
- the monthly limit on P2P transfers of citizens abroad from hryvnia payment cards of Ukrainian banks was reduced from UAH 100,000 (equivalent) to UAH 30,000 (equivalent);
- a monthly limit was set for settlements abroad using hryvnia payment cards in the amount of UAH 100,000 (equivalent) from all client bank accounts opened in national currency. It is believed that this restriction will not be felt by the vast majority of citizens who are abroad;
- The NBU Board may introduce a separate procedure for conducting currency purchase transactions by banks for their own needs.
Additionally, the NBU introduces changes to the regulations for the work of commercial banks with foreign currency.
Source: NBU
