Hryvnia Plunges as Dollar Hits 44.29 UAH in May.

Ukraine's Currency Depreciation and Economic Outlook

According to Novyny.live: Starting in May 2026, the Ukrainian hryvnia experienced a sharp decline, with the exchange rate against the U.S. dollar fluctuating between 43.80 and 44.29 UAH/USD. Authorities anticipate a slight stabilization of the exchange rate in June. Meanwhile, Ukraine's minimum wage remains at 8,647 UAH, and the subsistence minimum stands at 3,209 UAH. The National Bank of Ukraine has also begun withdrawing from circulation hryvnia banknotes issued between 2003 and 2006.

The hryvnia's depreciation became especially noticeable in the second half of May 2026. During this period, the lowest exchange rate was 43.80 UAH/USD, while the highest reached 44.29 UAH/USD. Economists predict a possible modest stabilization of the exchange rate in June, but see no significant reasons for a major recovery of the currency at this time.

Social and Economic Indicators in Ukraine

Ukraine's minimum wage remains fixed at 8,647 UAH, and the subsistence minimum is 3,209 UAH. Pensions in the country start from 2,595 UAH. These figures highlight that the standard of living for the population stays stable but low amid ongoing economic challenges.

Oleksiy Plotnikov, an economic expert, noted: 'There are no particular reasons for the dollar to rise in terms of supply and demand, but when EU funds arrive, it is better to credit them to the budget at the most favorable exchange rate possible.'

Additionally, the National Bank of Ukraine is removing from circulation banknotes with denominations of 20, 50, 100, 200, and 500 UAH that were issued between 2003 and 2006. This measure aims to modernize the currency in circulation and boost confidence in the national currency. Such steps are considered essential for maintaining financial stability in the country amid economic shifts.

The ongoing depreciation of the hryvnia and the overall economic situation in Ukraine underscore the fragility of the financial system. With high inflation and an unstable exchange rate, issues of raising household incomes and strengthening social support have become increasingly urgent. While the withdrawal of old banknotes may help restore public trust in the hryvnia, achieving meaningful improvements in Ukrainians' living standards will require comprehensive measures from the state and economic institutions.