The National Bank may peg the hryvnia to the euro
Kyiv • UNN
The NBU may consider pegging the hryvnia to the euro instead of the dollar due to the growing demand for the euro in foreign exchange transactions, which accounts for almost 50% of non-cash transactions.
As the volume of foreign exchange transactions in euros increases, there may soon be a discussion about switching to pegging the hryvnia exchange rate to the euro instead of the dollar.
This is stated in the message of the Council of Overseas Money and Foreign Exchange Market Indicators, UNN reports.
The demand for euros has increased among clients in non-cash foreign exchange transactions and now accounts for almost half, about 50%.
Market participants feel the need to develop a reference indicator for the hryvnia/euro exchange rate on the interbank market at 12:00, just as it is currently for the dollar.
The continuation of this trend, taking into account Ukraine's European integration aspirations, may in the near future raise the question of the feasibility of switching from the dollar to the euro as the main currency of the exchange rate peg
The US dollar remains the main exchange rate currency. As a reminder, the National Bank of Ukraine set the official hryvnia exchange rate at 39.2273 UAH/USD, strengthening it by 10 kopecks.
