Ukraine’s central bank devalues hryvnia in nod to IMF demands
The National Bank of Ukraine will devalue the hryvnia next week, following reports that the International Monetary Fund was pushing the bank to weaken the country's currency ahead of negotiations for a new loan program.
The official exchange rate will be Hr 41.9969 per dollar from Oct. 27, up from the current rate of 41.8970, according to the bank’s website. The move puts the hryvnia at its highest level against the dollar since January 2025.
Russia's full-scale invasion — now almost in its fourth year — continues to take its toll on Ukraine's economy, with Kyiv facing yet another year of budget gaps and a record-high trade deficit. The country is currently seeking new financing from partners to plug a $60-billion hole for 2026 and 2027, including through a new IMF program.
A devaluation would mean that inflows of foreign cash are converted into more hryvnias, and would also make exports more competitive.
"The current weakening of the hryvnia against the dollar is quite rapid for such a short period of time," according to Mykhaylo Demkiv, financial analyst at Investment Capital Ukraine.
"It looks to me like it’s a response to the IMF," he added.
A weaker currency means that Ukrainians will get less bang for their buck, risking public discontent. The bank will likely be very cautious in pursuing further devaluations.
The hryvnia has weakened over the course of October from Hr 41.1420 per dollar to the new rate of 41.9969 from Oct. 27. It’s not yet clear whether the bank will continue to devalue the hryvnia more substantially, or by how much.
Luca Léry Moffat
