The National Bank of Ukraine (NBU) announced it had set the new hryvnia rate at 36.5686 to the dollar, Polish state news agency PAP reported.
The previous rate, set at the start of the Russian invasion in February, was 29.25.
The NBU said in a statement the decision had been taken “in view of the change in the fundamental characteristics of Ukraine's economy during the war and the strengthening of the U.S. dollar against other currencies.”
The bank added that “this step will improve competitiveness of Ukrainian producers, converge exchange rate conditions for different groups of businesses and households, and support the resilience of the economy during the war.”
Two-year payment freeze on Ukraine’s international bonds
Thursday’s move comes a day after Ukraine asked its creditors for a two-year payment freeze on its international bonds as it strives to focus diminishing financial resources on fending off the Russian invasion, the Reuters news agency reported.
According to the World Bank, at the end of 2020, Ukraine had USD 130 billion in external debt outstanding.
Ukraine’s GDP to shrink by third, inflation to exceed 30% in 2022
The NBU has predicted that Ukraine’s economy will shrink by a third, while inflation will exceed 30 percent this year as war continues to ravage the country, the Ukrinform news agency reported on Thursday.
Meanwhile, analysts expect Ukraine’s budget deficit to rise to 25 percent of GDP, way above the 3.5 percent target set in the pre-war budget, the PAP news agency reported.
The postwar reconstruction of the country could cost at least USD 100 billion, according to Ukrainian economists.
The president of the European Investment Bank, Werner Hoyer, has estimated that the figure will exceed USD 1 trillion.
Thursday was day 148 of the Russian invasion of Ukraine.
(pm/gs)
Source: PAP, Reuters, ukrinform.net, finance.yahoo.com