The foreign exchange market saw significant movements on December 27, 2024, as the official dollar exchange rate against the hryvnia fell slightly, according to data reported by minfin.com.ua. The National Bank of Ukraine set the official dollar rate at 41.84 UAH, indicating a drop of 2 kopecks from the previous day, whereas the euro rate remained stable at 43.51 UAH.
On the black market, the dollar was trading at 42.11 to 42.19 UAH, with the euro priced between 44.00 and 44.18 UAH. Banking cash rates varied, with PrivatBank offering the dollar at 41.55 to 42.15 UAH, and Oschadbank setting its rate at 41.65 to 42.25 UAH. Card transaction rates remained slightly higher, with PrivatBank maintaining the dollar rate at 42.19 UAH.
Meanwhile, on the Forex market, the dollar surged past the 106 ruble mark, reaching 106.747 RUB for the first time since December 12, according to Investing.com. This marked a notable increase of 7.01% for the American currency, which outpaced the euro, advancing only 1.95% to 106.254 RUB, and later moving up to 107.108 RUB.
The Central Bank of Russia responded to these market shifts by establishing the official dollar rate at 99.2295 RUB, down from 99.6125 RUB the previous day. The euro's official valuation also decreased to 103.2997 RUB from 103.9416 RUB. These updates come amid changes to the methodology for setting official currency rates, which now relies on more comprehensive data from both exchange and non-exchange trading sectors.
According to financial analysts, the adjustments made to how the Central Bank determines these rates may have significant ramifications for currency traders. Analyst Denis Buiyvolov from BCS World Investments predicted the dollar would settle around 100 rubles during the New Year holiday period.
Considering the Ukrainian market, the dollar's selling price at major banks showed consistency. PrivatBank listed both the dollar and euro rates unchanged at 42.20 UAH and 44.30 UAH, respectively. This stability suggests the market is adjusting to the broader economic trends influencing exchange rate dynamics.
Clarity on these methods of calculating exchange rates has been provided by the Central Bank of Russia. They have committed to reflecting the realities of growing off-exchange activities to maintain the representativeness of the official rates. Under the new guidelines, outlined by Bank of Russia's Regulation No. 6956-U, there is also the provision to calculate rates through cross-exchange if direct trading data is unavailable, ensuring transparency and viability.
Overall, the fluctuations observed on December 27 signal potential shifts not only for traders but also for consumers dealing with currency exchange on everyday transactions. The contrasting movements of each currency, alongside regulatory changes, beg the question of how these adjustments will affect future trading—and whether these rates will stabilize or experience more volatility. Keeping abreast of these developments is more important now than ever for anyone affected by currency exchanges.
