Ukrainian currency falls to record low against dollar
Date
12/20/2024 2:40:58 PM
(MENAFN) Ukraine’s national currency, the hryvnia, fell to a record low of 41.83 against the US dollar on Tuesday, according to the National bank of Ukraine (NBU). This marks the currency’s lowest value to date, as reported by several media outlets.
The devaluation of the hryvnia may be linked to the easing of foreign currency controls by the Ukrainian central bank, according to Strana.ua. The currency’s decline follows Ukraine’s rejection of a proposed Christmas ceasefire and the assassination of a key Russian military official, which Moscow attributes to Ukrainian actions. Russia has accused Ukraine of resorting to "terrorist tactics" in response to its military setbacks.
Over the past year, the hryvnia has depreciated by more than 13%, and since the conflict with Russia began in February 2022, it has lost over 44% of its value. Earlier this year, the currency had fallen to a previous low of 40.69 to the dollar in mid-June after the NBU lowered its key interest rate by 0.5 percentage points to 13%.
The hryvnia is expected to continue its decline, with a forecasted rate of 42.10 per dollar by the end of 2024, in line with the government’s budget projections. Analysts suggest the currency depreciation may be tied to the Ukrainian government’s need for more hryvnias in exchange for foreign currency to cover year-end social payments.
The EU has provided substantial financial aid to Ukraine through its Ukraine Facility, and the US has given over $26.8 billion in budget support since 2022.
MENAFN20122024000045015687ID1109017861
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.