The National Bank of Ukraine (NBU) set the official exchange rate of the hryvnia to the euro on February 3, 2023 at 40.1724. The exchange rate increased by almost 35 pennies and exceeded the level of 40 hryvnias for the first time since the beginning of the Russian invasion.
This was reported by the press service of the NBU.
At the same time, the NBU will not change the official exchange rate of the hryvnia to the dollar at 36.5686 from July 2022.
From February 24, 2022, the National Bank fixed the exchange rate of the hryvnia to the dollar (29.2549) and the euro (33.1707), but within a month it began to set the exchange rate of the euro depending on the fluctuations of the euro-dollar pair on the global financial market.
In July, the bank released the dollar rate to more market values, then it was fixed at the level of 36.5686 hryvnias.
In general, last year there were several twists and turns, when the dollar even took a higher position than the euro. This was due to strong economic growth, the Fedʼs actions to raise interest rates and capital inflows.
The energy crisis caused by the Russian invasion of Ukraine also had a significant impact on the euro.
However, then the situation changed — the dollar fell to a nine-month low, and the euro rose to the level of 1.10 per dollar. The growth of the euro against the dollar is due to expectations of different rates of interest rate hikes by the U.S. Fed and the European Central Bank.
Thus, in Ukraine, the increase in the euro exchange rate is connected exclusively with the trend in world markets, since the NBU exchange rate is set only on the basis of the euro-dollar exchange rate and does not depend on the domestic situation.