Overview
- The National Bank of Ukraine set the official exchange rate for October 28 at 42.07 UAH per dollar, pushing the currency beyond the 42 threshold for the first time since January.
- Regulatory data show the dollar climbed nearly one hryvnia over October, moving from 41.14 at the start of the month to 41.99 on October 27 before the latest fixing.
- Experts cited by Ukrainian outlet UNN say the central bank is pursuing controlled depreciation, and they note IMF lenders prefer a weaker currency because it boosts local-currency receipts from exports, customs and foreign aid.
- Economist Olena Sosedka, quoted by UNN, forecasts the exchange rate could fluctuate between 42.5 and 45.7 per dollar through year-end, with some analysts warning of temporary moves above 46.
- The latest adjustment comes under the managed flexible regime introduced in October 2023, following a wartime peg at 29.25 and a 25% devaluation implemented in July 2022.