Hryvnia falls to its lowest rate against the US dollar in four years

27 January, 12:05 PM
Hryvnia falls to its lowest rate against the US dollar in four years (Photo:National Bank of Ukraine)

Hryvnia falls to its lowest rate against the US dollar in four years (Photo:National Bank of Ukraine)

Ukraine’s national currency the hryvnia clawed back some value on Jan. 25 after dipping to a four-year low against the U.S. dollar.

 After the fall, the hryvnia strengthened against the doallr by 9 kopikas – to UAH 28.62/28.64 per $1, from UAH 28.71/28.73 per $1. In the cash market, the selling rate of the dollar rose to UAH 29 per $1.

Demand for foreign currency exceeded supply, which forced the National Bank of Ukraine (NBU) to sell dollars to stabilize the market.

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The NBU sold $148.3 million on the interbank market to smooth out the depreciation of the hryvnia this week, according to Oleksii Lupin, Director of the Open Markets Department at the central bank.

“The current situation in the foreign exchange market is unpleasant for sure, but it’s not a disaster,” he said. 

Lupin added that the NBU is conducting interventions on the interbank market. 

“We’ve sold more than $880 million since the beginning of January,” Lupin said.

The official exchange rate of the NBU as of Jan. 26 was UAH 28.6658 per $1.

According to the Ministry of Finance, UAH quotes against the dollar on the cash market are currently at UAH 28.52-28.85 per $1. Euros are bought at UAH 32.10 and sold at UAH 32.55. According to the currency auction on the “black” market, the dollar is trading at UAH 28.65-28.80 per $1, and the euro at UAH 32.21-32.45.

Exchange rates in banks, hryvnia to dollar, sell/buy:

· PrivatBank UAH 28.300/28.950

· Oschadbank UAH 28.450/28.900

· Ukreximbank UAH 28.550/28.800

· Raiffeisen Bank AVAL UAH 28.450/28.850

· First Ukrainian International Bank UAH 28.650/28.950

· Ukrgasbank UAH 28.350/28.950

· Alfa-Bank UAH 28.600/28.850

· OTP Bank UAH 28.350/28.850

· Ukrsibbank BNP Paribas Group UAH 28.500/29.000

· Universal Bank UAH 28.650/28.950

Due to tension on the Ukrainian-Russian border caused by a Russian military build-up, on Jan. 24 the main U.S. stock indices fell by an average of 3%. European markets also sank. In Russia, the dollar rose above 79 rubles – the highest level since November of last year, and the euro exchange rate exceeded 89 rubles.

The largest U.S. investment bank, J.P. Morgan closed all its remaining long positions in the ruble at a loss.

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