The Ukrainian hryvnia has fallen to a new record low against the euro, with the National Bank of Ukraine setting the official exchange rate at 52.1301 hryvnias for August 21.
Official data published on the website of the central bank shows the European single currency gained 26 kopecks compared to Thursday, August 20, pushing the exchange rate to its highest level in Ukrainian history.
The latest shift marks a historic milestone for the national currency. The official hryvnia rate first crossed the benchmark threshold of 52 hryvnias per euro on June 16, when the central bank set the rate at 52.0378 hryvnias.
US dollar rate and currency peg
The National Bank of Ukraine also set the official exchange rate for the US dollar at 44.6144 hryvnias per dollar for August 21. The hryvnia recorded its previous historic low against the American dollar on June 11, when the official rate reached 44.9790 hryvnias.
Central bank figures indicate that the rise in the euro exchange rate in Ukraine is driven primarily by the devaluation of the US dollar. Because the hryvnia is pegged to the dollar, international fluctuations in dollar value pushed the euro past 51 hryvnias for the first time in January.
Role of Ukraine central bank
The National Bank of Ukraine operates as the country's central monetary authority, tasked with maintaining price stability, managing foreign reserves, and setting official reference rates for commercial financial transactions.
A currency peg is an exchange rate policy where a national currency's value is linked to another major currency. Under Ukraine's monetary setup, changes in external exchange rates between the dollar and the euro automatically influence local exchange rates for Ukrainian consumers and businesses.
The hryvnia has served as Ukraine's national currency since replacing the karbovanets in September 1996, with each hryvnia divided into 100 kopecks.
