The National Bank of Ukraine (NBU) has announced significant changes to its currency exchange rate policy, which will take effect on March 31, 2025. This decision marks a pivotal shift as the NBU will no longer calculate the official exchange rate of the hryvnia against the Russian ruble, the Belarusian ruble, and a total of 15 other currencies.
The regulator outlined that the rationale behind this change is the minimal trade volume associated with these currencies. The NBU emphasized that the need for updated approaches is driven by the increasing automation of calculations, enabling a more efficient and streamlined process for determining exchange rates.
According to the NBU, the new policy will replace the existing two-tier system of currency lists—one for daily calculations and another for monthly assessments—with a single daily list. This new list will include foreign currencies from Group 1 of the Classifier of Foreign Currencies, along with currencies from countries that account for more than 95% of Ukraine's trade turnover.
As part of the changes, the NBU will also alter the frequency of exchange rate calculations for 11 currencies, including the Algerian dinar, bat, UAE dirham, and Malaysian ringgit, which previously had their rates recalculated monthly. The new approach allows for daily updates, reflecting a more responsive and accurate exchange rate system.
"The use of two lists of currencies for calculating the official hryvnia exchange rate has lost its relevance," the NBU stated in a recent announcement. This shift is expected to enhance the overall efficiency of the exchange rate determination process.
As of March 25, 2025, the official exchange rate set by the NBU was 4.9 hryvnias per 10 Russian rubles. However, this rate will no longer be calculated following the new policy implementation. The NBU plans to review the new list of currencies for daily exchange rate calculations every three years, ensuring that it remains aligned with current trade dynamics.
The decision to cease calculating the exchange rate against the Russian and Belarusian rubles, along with other currencies, reflects the NBU's commitment to adapting its policies in response to changing economic conditions. The NBU noted that the currencies being excluded from the calculation represent a minor share of Ukraine's trade, thus justifying the move.
While the Central Bank of Russia continues to calculate the ruble's exchange rate against the hryvnia, the NBU's decision signifies a strategic realignment in how Ukraine engages with its financial partners. This initiative is part of a broader effort to modernize the country's financial systems and enhance its economic resilience.
In the week leading up to the announcement, from March 17 to March 21, the NBU sold a total of 643.6 million dollars on the interbank market without engaging in any currency purchases. This activity underscores the NBU's proactive approach to managing the national currency amid fluctuating market conditions.
In summary, the NBU's decision to halt the calculation of the hryvnia exchange rate against the Russian ruble and other currencies is a significant step towards simplifying and modernizing Ukraine's currency policy. By focusing on currencies that play a crucial role in trade, the NBU aims to enhance the stability and predictability of the hryvnia in the international market.
