The procedure for calculating the hryvnia exchange rate has been changed

Since April 4, 2014 the official exchange rate of hryvnia against other currencies and rate of precious metals will be determined by the National Bank of Ukraine day-to-day, for each business day, and will be valid since the moment they are set till the next review.

The official exchange rate of hryvnia against the US dollar will be calculated as a weighted average rate of the midpoint rates between the buying and selling rates for the next business day, in line with the NBU’s system of confirmation in the interbank foreign exchange market of Ukraine. This is set out in the resolution passed by the NBU’s Board dd. March 31, 2014, №180 on changes to regulation on official exchange rate of hryvnia against other foreign currencies, and rate of precious metals, registered with the Ministry of Justice of Ukraine dd. April 1, 2014, under №375/25152 .

As is known, earlier this year the hryvnia exchange reference rate set against freely convertible currencies and foreign currencies of major external economic partners of Ukraine, as well as the rate of precious metals took effect next day after they were set.  Yet, pursuant to resolution №180 they are being applied now on the day just after they are approved.

The official exchange rate of the Ukrainian hryvnia to the US dollar will be calculated as a weighted average in cross-exchange rates in the market, for the current business day by compiling the USD purchases/sales, without ±2% possible exchange rate deviation previously stipulated.

The exchange rate of hryvnia to other foreign currencies and rate of precious metals are based on the rates quoted in the international currency markets and official exchange rate of the Ukrainian hryvnia against the USD set for the next day.

Starting from February 7, 2014 the National Bank of Ukraine will determine the official UAH/USD rate calculated as a weighted average rates quoted, i.e. according to trading in the interbank forex market of Ukraine. 

Now this procedure is backed up by the regulations. According to Head of General Department for Monetary Policy Elena Scherbakova, the updated procedure for calculation of an official exchange rate of hryvnia against foreign currencies and rate of precious metals will allow moving to the system of flexible exchange rates and fulfill the international obligations of Ukraine, this will also enable the retention of the international reserves and help improve transparency and efficiency of exchange rate policy of the National Bank of Ukraine.

«This fully corresponds to the latest international tendencies and best practices of the leading central banks in the world», - Elena Scherbakova said. In her opinion, the National Bank of Ukraine is planning to set and make public the official exchange rate of hryvnia each business day after 12:00.

In addition, the said regulation specifies the alterations made to the names and codes of some foreign currencies, the reference exchange rate of hryvnia against which is officially set by the NBU.