Ukrainian deputy finance minister sees benefits of hryvnia's devaluation

MOSCOW. March 4 (Interfax) - The devaluation of the hryvnia helps direct consumer demand towards Ukrainian producers, Ukraine's Deputy Finance Minister Olga Zykova said.

The hryvnia's devaluation, which began in 2025, benefits Ukrainian producers, Ukrainian media quoted Zykova as saying at a business forum in Luxembourg.

As reported, the National Bank of Ukraine (NBU) set the official exchange rate for March 4 at UAH 43.4548/$1, but the hryvnia's exchange rate weakened by 22 kopecks in the course of the day, hitting a new all-time low. The NBU has weakened the hryvnia's official exchange rate against the dollar by 2.6% since the beginning of the year, versus 0.8% for the whole of 2025.

The euro's official exchange rate against the hryvnia grew by 13.5% in 2025 and by 1.2% since the beginning of 2026 to UAH 50.4597/EUR1.

After approving a new arrangement under the Extended Fund Facility for Ukraine, the International Monetary Fund said that the new program's priorities include anchoring price stability, curbing external imbalances, including by making the exchange rate more flexible, as well as maintaining the financial sector's stability.