Is Keeping Savings in Hryvnia a Smart Move at a Rate of 45? An Expert Weighs In.

Borys Kushniruk on the Hryvnia and Exchange Rate Policy

According to Espreso.tv: Borys Kushniruk, who heads the expert council at the Ukrainian Analytical Center, has shared his perspective on whether it makes sense to hold savings in the national currency. He argues that the National Bank of Ukraine possesses sufficient gold and foreign exchange reserves to keep the hryvnia stable. Given current interest rates on time deposits, Kushniruk believes that keeping money in hryvnia could actually be a profitable strategy.

As of June 10, the exchange rate in Ukrainian banks stands at 45.17 hryvnia per US dollar and 52.30 hryvnia per euro. The expert points out that a clearly defined currency policy from the central bank could help curb speculative demand for foreign currency. He warns:

'When you don't know what the National Bank is going to do, it naturally fuels the urge to buy foreign currency.' - Borys Kushniruk

Kushniruk also highlights a major challenge: the country’s trade imbalance. Ukraine’s exports are currently half the value of its imports. In this context, he stresses the need for a planned and predictable devaluation of the national currency. According to him, 'the real question is how correctly this is being carried out.'

Hryvnia Stability and the Role of Monetary Policy

In short, Kushniruk urges the public to consider the hryvnia’s stability as a viable option for preserving savings. He emphasizes that a transparent and consistent currency policy is essential for Ukraine’s economic health.

These remarks from Borys Kushniruk underscore the importance of national currency stability amid today’s economic challenges. The trade deficit and the gap between exports and imports are factors that could shape exchange rate decisions—making the issue of currency choice highly relevant for many Ukrainians. A clear monetary policy from the National Bank of Ukraine could be key to ensuring the hryvnia remains stable and that public trust in the national currency endures.