Ukrainian Currency Fluctuates: Hryvnia Sets New Low Against Dollar, Gains Ground Against Euro
The Ukrainian hryvnia experienced notable fluctuations against major global currencies on Tuesday, December 3. As declared by the National Bank of Ukraine, the official dollar-hryvnia exchange rate was set at 41.65 UAH/USD for the day. This represented a 7 kopeck decrease compared to the previous figure and marked a new historical low for the Ukrainian currency.
However, the hryvnia exhibited resilience against the euro, strengthening its position relative to the European currency. According to the regulator’s website, the official euro exchange rate for Tuesday was set at 43.72 hryvnia per euro, signifying an 18 kopeck gain for the hryvnia.
Trading on the interbank foreign exchange market of Ukraine also saw shifts, with hryvnia quotes settling at 41.70/41.72 UAH/USD against the dollar and 43.84/43.85 UAH/EUR against the euro by 4:00 PM.
Exchange Rates in Kyiv
In Kyiv, exchange offices observed a slight dip in the dollar’s exchange rate this morning. The dollar could be purchased for 41.80 UAH/USD, a decrease of 2 kopecks compared to Friday’s rate, while the selling rate for the dollar stood at 41.75 UAH. The cash euro rate remained unchanged at 44.35 UAH/euro, while the selling rate for euros was 44.13 UAH/euro.
PrivatBank Rates Remain Steady
At PrivatBank, the dollar exchange rate held steady on December 2, remaining at 41.85 UAH per dollar. Similarly, the euro exchange rate also remained unchanged at 44.35 UAH per euro.
PrivatBank customers could sell American currency at a rate of 41.25 UAH, while euros could be sold at a rate of 43.35 UAH per unit of foreign currency.
What are the potential long-term consequences of the hryvnia’s volatility for Ukraine’s economy?
## “Hryvnia’s Rollercoaster: What does this mean for Ukraine?”
**(INTRO MUSIC)**
**HOST:** Welcome back to the program. Today we’re focusing on the Ukrainian economy and the
recent volatility experienced by the hryvnia, Ukraine’s national currency. Joining us to discuss
this is Dr. Peter Kovalenko, an economist specializing in Eastern European markets.
Dr. Kovalenko, thank you for being with us.
**DR. KOVALENKO:** Thank you for having me.
**HOST:** The hryvnia has recently hit a record low against the US dollar while simultaneously
gaining ground against the Euro. This seems like conflicting news.
Can you help us unpack what’s happening?
**DR. KOVALENKO:** Certainly. It’s true, the hryvnia’s performance against the dollar and euro
appears paradoxical. The weakening against the dollar reflects several factors, including
ongoing geopolitical uncertainty stemming from the war, increased demand for the dollar
as a “safe haven” asset, and potentially, some speculative activity.
On the other hand, the hryvnia’s
strength against the euro is likely due to the eurozone’s own economic challenges,
such as inflation and energy concerns.
**(HOST gesturing towards a graphic showing the hryvnia vs. USD and EUR)**
**HOST:** So it’s a complex picture influenced by both global and regional trends.
What are the implications of this volatility for the average Ukrainian?
**DR. KOVALENKO:** This fluctuation undoubtedly creates uncertainty and poses challenges. For
Ukrainians, import prices will likely increase due to the weaker hryvnia against the dollar,
potentially leading to higher costs for consumer goods.
However, the stronger hryvnia against the euro could provide some relief for exporters
selling goods to European markets, potentially boosting certain sectors of the economy.
**HOST:** Looking ahead, what predictions can be made about the hryvnia’s future
performance?
**DR. KOVALENKO:** Predicting currency movements is notoriously difficult, especially in a
volatile environment like the current one.
The hryvnia’s trajectory will likely depend on several key factors.
The ongoing war, the global economic outlook, and the government’s
economic policies will all play a role.
**(HOST nodding)**
**HOST:**
Dr. Kovalenko, thanks for offering such valuable insights into this
complex financial situation. We wish you and all Ukrainians the best
in navigating these challenging times.
**(OUTRO MUSIC)**
