Hryvnia fell to 50 euros: when will Ukrainians feel the price increase.

In the first half of 2025, Ukraine experienced significant devaluation of the hryvnia against the euro. The official exchange rate nearly reached the psychological barrier of 50 UAH, which affected prices. The head of the National Bank, Andriy Pyshny, emphasized that the impact of this devaluation on the cost of goods and services will be felt by Ukrainians later.

Starting in March, there was a rise in the hryvnia exchange rate against the euro, due to the strengthening of the euro against the dollar amid tariff wars initiated by the administration of U.S. President Donald Trump. The regulator believes that exchange rate fluctuations are one of the important factors in determining prices for goods. Following the already occurred devaluation of the hryvnia against the euro, this trend will gradually affect prices over the next quarters.

The dollar exchange rate remains stable due to the managed flexibility policy, but a price increase is possible in the future if the euro weakens. The hryvnia exchange rate has a positive impact on prices, as well as other factors such as the prolonged war, slowing economic development, labor shortages, inflationary pressure, and so on.

Transition to pegging the hryvnia to the euro

Although the dollar remains the main currency in Ukraine, the question arises about the possible pegging of the hryvnia to the euro due to integration with the European Union. The head of the NBU noted that if such a decision is needed, it will be made, but it will hardly be felt by citizens. Currently, such actions are not planned for 2025; the regulator is conducting an analysis of economic development to choose the best scenario.

It is also important to note that the 500 euro banknote has begun to be withdrawn due to counterfeiting, and some shops and exchange offices no longer accept these banknotes. There are also tips on how to exchange dollars better, indicating that it is most profitable to do so on Wednesdays or Thursdays.

In the first half of 2025, there was a significant drop in the hryvnia against the euro, leading to an increase in prices for goods and services. Such currency devaluation can impact the country's economy in the coming quarters. The head of the National Bank Andriy Pyshny noted that the situation is being carefully analyzed, and the possibility of pegging the hryvnia to the euro is currently not relevant.