Dollar exchange rate: Ukrainian banks project year-end average

The dollar exchange rate at the start of the year compared to its current level suggests the average rate might reach UAH 40-40.5 per dollar by year’s end. 

This forecast was provided by Andriy Dubas, President of the Association of Ukrainian Banks, during a briefing at the Media Center Ukraine.

“Today, the rate stands slightly above UAH 40 per dollar. However, considering the exchange rate throughout the year, I anticipate an arithmetic average of 40-40.5. At the year’s start, the rate was around 39, dipping lower in February before rising,” Dubas stated.

He highlighted that the National Bank of Ukraine uses its gold and foreign exchange reserves to maintain the exchange rate. He mentioned that the current level of reserves enables the NBU to “smooth out the corners.”

“Currently, the NBU utilizes foreign exchange reserves to support the rate due to a significant import surplus over exports caused by the war. A substantial portion of our economy has been destroyed by Russian actions. Nonetheless, we have a strong coalition of international partners providing financial support to Ukraine. The present foreign exchange reserves, approximately USD 41 billion, allow the NBU to effectively smooth out demand fluctuations. When demand exceeds supply, we can offer foreign currency, and when supply exceeds demand, we can buy back more,” Dubas explained.

Read more: https://mediacenter.org.ua/news