The Ukrainian hryvnia (UAH) slipped to around 0.024 per USD, following an official move by the National Bank of Ukraine (NBU) to adjust its reference exchange rate to roughly 41.22 UAH per dollar.
This policy-driven depreciation reflects the central bank’s ongoing efforts to align the currency closer to market dynamics and ease external imbalances. While the shift was expected, the adjustment has accelerated short-term weakness in the hryvnia. The move underscores the NBU’s balancing act between maintaining financial stability and supporting export competitiveness. Investors and traders interpreted the rate revision as a near-term bearish signal for the currency.
Dollar demand and capital outflows intensify pressure on UAH
Rising foreign exchange demand from importers, external debt servicing, and remittance-related conversions has further weighed on the hryvnia. At the same time, capital outflows—as investors and businesses reduce exposure to local currency assets—have increased downward pressure on the exchange rate. Such outflows reflect ongoing uncertainty about Ukraine’s macroeconomic trajectory amid high financing needs and fragile investor confidence. The combination of stronger dollar demand and reduced foreign inflows has tightened liquidity in the FX market, reinforcing depreciation trends
Karapetjanc: macro weakness and geopolitical risks remain key headwinds
According to analyst Viktoras Karapetjanc, the hryvnia’s latest decline is also linked to weak domestic economic data and persistent inflation concerns, which are eroding confidence in the local currency. He adds that external and geopolitical risks—including war-related instability, sanctions, and disruptions in trade routes—are further amplifying safe-haven flows into the U.S. dollar.
Karapetjanc stated:
“The move seems largely driven by central bank policy and external dollar demand pressures — the NBU’s official rate shift signals they’re managing depreciation. If dollar demand doesn’t ease and inflation remains high, UAH could slip further toward 42+ per USD.”
These forces combine to create a challenging environment for UAH stability. Karapetjanc notes that while the NBU’s controlled depreciation helps prevent market shocks, sustained downward pressure is likely until capital flows normalize and macro fundamentals improve.
Recently we wrote that on September 3, 2025, the Verkhovna Rada adopted in the first reading draft law No. 10225-d, a key step toward legalizing Ukraine’s virtual assets market.
Latest Finance News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
