The rate is no longer 29,25, but it still remains fixed. I understand that now people will have many questions and the fear of "100 dollars". Therefore, we will answer the main questions.
Why couldn't they leave it as it is?
We are defending ourselves for the fifth month. During this time, fundamental changes took place in the Ukrainian economy. In addition, changes took place in the world economy. Under such conditions, the official exchange rate of the hryvnia at the level of February 24 simply does not correspond to reality and is gradually losing its role as an anchor for expectations. Why didn't they let the course "go free"? Because the course in the conditions of war is like an "anchor of stability." It helps us to maintain price and financial stability, helps to avoid inadequate fluctuations, which can have a bad effect on prices in stores and your purchasing power (that's in very simple language). The cost of imports will increase (and yes, this will affect inflation.
However, according to the principle of the lesser evil, such a step is justified). Since the importers already included the currency risk in the price before the correction, this increase will not be so large-scale. But it will still happen, and it will add a certain impulse to inflation. At the same time, this impulse to inflation is an order of magnitude less risk for financial stability than the gradual loss of international reserves in conditions of an overvalued national currency. At the same time, the continuation of the fixed exchange rate policy sets the benchmark for the coming months and is an anchor of stability.
Our exports (potentially good news) The value of exports in hryvnias will increase. And if Ukraine manages to unblock grain exports at least partially, it will provide tremendous support to farmers. In addition, the correction of the exchange rate against the dollar eliminates the effect of artificial strengthening of the hryvnia against the euro and other currencies, which also "fall" against the dollar. This artificial strengthening significantly weakened the competitiveness of Ukrainian exporters in their main markets.
Will the dollar grow in the exchangers?
We had several parallel courses with a wide gap. It was still impossible to buy a dollar at the exchange at the NBU exchange rate. Banks sold 6 hryvnias more expensive, i.e. at plus or minus the exchange rate, which has now become official and "real". Therefore, the correction of the official rate will not lead to an automatic recalculation of the cash rate, which will continue to fluctuate under the influence of the supply and demand balance. At the same time, our country lost a lot of money when it received funds from international partners and "exchanged" them at the official exchange rate of 29,25 to finance budget expenditures.
Buying the dollar in a new way
The NBU will allow banks to sell non-cash currency with subsequent placement on deposit for a period of three calendar months without the right of early termination. You can buy currencies for a month in the amount of up to 50 thousand hryvnias equivalent. The step is good. This is an alternative to buying cash currency, which will contribute to the stabilization of conditions on the cash market.
What about limits?
There are different opinions regarding the National Bank's decision to set new limits. However, the regulator's motive is clear — to prevent money from being "laundered" from Ukraine. Therefore, citizens, as before, will be able to withdraw UAH 50 (equivalent) per month from hryvnia payment cards abroad. At the same time, the limit for cash withdrawals from hryvnia payment cards abroad has been changed from monthly to weekly: UAH 12,5 thousand (equivalent) for seven calendar days. A monthly limit of UAH 100 has also been set for payments abroad using hryvnia payment cards. That is, our forced migrants abroad have the opportunity to pay by card for 100, as well as withdraw 50. That is, to have approximately 4 thousand euros at your disposal per month, which is sufficient to meet basic needs.
