The National Bank of Ukraine (NBU) is set to implement significant changes to its currency exchange rate calculations beginning March 31, 2025. This move will streamline the process by canceling the monthly establishment of the official hryvnia exchange rate and ceasing calculations for several currencies, including the Russian and Belarusian rubles.
Currently, the NBU operates with two separate lists for currency calculations: a daily list that includes 33 currencies and a monthly list for 24 currencies. However, the bank has decided to consolidate these into a single daily basket that will encompass 41 currencies. This change is intended to align with international practices and respond to the increased automation of financial calculations, which has reduced operational risks.
According to the NBU, "Due to the growth of automation of calculations, operational risks have decreased, therefore the use of separate daily and monthly currency conversions has become impractical." This statement highlights the bank's reasoning for the shift, emphasizing a need for efficiency in currency management.
The new daily basket will include currencies from countries that account for at least 95% of trade with Ukraine, ensuring that the most relevant currencies are prioritized. Among the currencies that will be included are the Algerian dinar, UAE dirham, Malaysian ringgit, and others. Conversely, the currencies of 15 nations will be excluded from this list, including those of Belarus, Brazil, Armenia, and Iran, among others.
The NBU's decision to stop calculating the exchange rate for the Russian ruble is particularly noteworthy, given the ongoing geopolitical tensions and the economic implications of such a move. The bank has stated that the changes reflect a broader strategy to adapt to evolving economic conditions, having previously moved to a managed flexible exchange rate regime for the hryvnia against the US dollar back in October 2023.
On March 7, 2025, the NBU also raised its discount rate from 14.5% to 15.5% per annum, signaling its readiness to take further measures in response to inflationary pressures. This increase is part of the bank's ongoing efforts to stabilize the national currency and manage economic challenges effectively.
The official hryvnia exchange rate to the Russian ruble, as of March 26, 2025, is set at 4.9 hryvnias for 10 rubles. As the NBU prepares for these changes, it emphasizes the importance of adapting to the current economic landscape, which continues to evolve rapidly.
In summary, the NBU's upcoming changes reflect a significant shift in how currency exchange rates are managed in Ukraine. By moving to a single daily basket of currencies, the bank aims to enhance efficiency and reduce risks associated with currency calculations. This decision underscores the importance of aligning with international practices while addressing the specific needs of Ukraine's economic environment.
