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Ukraine Devalues Hryvnia to Adjust to War-Time Economic Reality

  • Central bank sees inflation slowing to about 21% next year
  • Moves come on the heels of Ukraine’s debt-freeze proposal
Updated on

Ukraine’s central bank devalued the hryvnia and said it may keep interest rates at 25% for another two years to protect its dwindling foreign-currency reserves as Russia’s invasion ravages the economy. 

The National Bank of Ukraine said the “shift in the fundamental parameters” of Ukraine’s economy during the war, along with the dollar’s strengthening, triggered the currency adjustment. It set the official hryvnia rate at 36.5686 per dollar compared with 29.25, where it had been frozen for the past five months.