The National Bank of Ukraine has updated its official currency exchange rates for February 24, 2023, indicating a slight increase in the value of the U.S. dollar and a notable rise in the euro.
As of tomorrow, the exchange rate for the dollar will be set at 43.29 UAH, reflecting a 2 kopeck increase, while the euro will trade at 51 UAH, surpassing a significant psychological threshold by 9 kopecks.
According to economist Borys Kushniruk, the structure of currency inflows to Ukraine has shifted during the ongoing conflict, with a growing proportion of financial assistance now being received in euros. This change is largely attributed to increased support from the European Union, while dollar support continues to come from non-EU countries and international financial institutions such as the IMF and the World Bank.
The rising share of euros in the structure of Ukraine’s foreign exchange reserves directly impacts the country’s financial metrics. Since these reserves are calculated in dollars, fluctuations in the euro’s exchange rate play a critical role. An increase in the volume of euro-denominated assistance, combined with the euro’s appreciation against the dollar, results in an automatic rise in foreign exchange reserves when expressed in dollar terms.
This adjustment in currency values and the evolving structure of financial support are significant for Ukraine’s economic landscape as it navigates ongoing challenges.
The National Bank of Ukraine has revised its currency rates, with the dollar increasing slightly and the euro surpassing a key threshold. The shift in financial support from the EU towards euros is influencing the country's foreign exchange reserves.