The dollar is rising due to geopolitical tensions — Pyshny
In recent weeks, the U.S. dollar has risen against most global currencies amid growing geopolitical uncertainty and turbulence in financial markets.
This was stated by NBU Governor Andriy Pyshnyy.
At the same time, he noted that the hryvnia has changed only slightly against the euro and the currencies of Ukraine’s main trading partners.
Pyshnyy emphasized that Russian aggression remains the key risk to the Ukrainian economy, affecting inflation and economic activity. Additional threats are linked to the escalation of the global geopolitical situation.
In his assessment, a prolonged war in the Middle East could lead to significant fluctuations in energy prices. This, on the one hand, would intensify inflationary pressure in Ukraine, and on the other, would increase Russia’s financial capacity to wage war.
At the same time, the head of the NBU acknowledges positive scenarios, particularly due to increased support for Ukraine from international partners.
Since the beginning of the year, Ukraine has already received $5.5 billion in international aid, which has allowed it to finance critical budget expenditures. International reserves stood at approximately $55 billion as of the end of February, supporting the stability of the currency market.
As of the morning of March 17, a steady decline in foreign currency exchange rates was recorded on Ukraine’s cash market, with the dollar and euro losing between 5 and 37 kopecks in value at exchange offices and bank teller windows.
Earlier, the dollar set a new all-time high and broke through a psychological barrier.
