Expert Forecast: Dollar Weakens, Euro Strengthens in February Currency Shift.

Currency Exchange Rates in Ukraine for February 2023

According to TSN.ua: February 2023 saw a shift in Ukraine's currency market, with the U.S. dollar losing value against the hryvnia while the euro gained. As of February 1, 2023, the official exchange rate was 42.51 UAH per dollar and 51.03 UAH per euro. Financial analysts predict that these rates will remain largely stable over the next two weeks. These movements are being closely watched as indicators of the country's economic resilience.

Earlier, in mid-January 2023, the average cash dollar sale rate peaked at 43.70 UAH on January 16. By the month's end on January 31, it had declined to 43.15 UAH per dollar. Overall, the cash dollar appreciated by 60 kopiykas during January, before dropping to 42.51 UAH on February 1.

Euro Rate and the Impact of the Discount Rate

Regarding the euro, its rate stood at 51.03 UAH per euro on February 1. Notably, it had reached a monthly high of 51.70 UAH on January 31. A key factor influencing the market was the National Bank of Ukraine's decision on January 30, 2023, to lower its key policy (discount) rate from 15.5% to 15% annually. Furthermore, during January, the National Bank sold the equivalent of 3 billion U.S. dollars in foreign currency on the market.

Market experts provided the following commentary on the situation:

• Oleh Pendzin notes that the dollar's exchange rate is expected to remain stable at its current level until mid-February.
• Andrii Zablovsky adds that this forecast of relative hryvnia stability is contingent on what he terms an 'inert' scenario of events unfolding.

The currency fluctuations highlight the dynamic nature of the market, requiring constant monitoring by analysts and investors. The central bank's actions, particularly the discount rate cut, are likely to be a significant factor shaping future trends. While the anticipated short-term stability of the dollar may offer some reassurance to businesses and the public, the overall situation remains tense due to persistent external economic pressures.