Euro reaches 50 hryvnias: Ukrainians named the limit until the end of the year.

The official euro exchange rate is approaching 50 hryvnias per unit, marking a historic milestone. In the last four months, the rate has increased by over 13.5%. Some banks are already trading euros at this rate.

Global processes and record growth of the euro exchange rate

According to Economic Truth, the sharp increase in the euro exchange rate in Ukraine is not driven by domestic factors, but by global processes. The US dollar has experienced its worst half-year since 1973, losing value by 10.8% against the major world currencies.

The weakening of the 'greenback' is influenced by three key factors: the unpredictable trade policy of Donald Trump, the threat to the independence of the Federal Reserve System, and the uncontrollable growth of the US national debt. Investors are starting to shift funds from American assets to alternative 'safe havens', among which is the European Union economy.

Future predictions

Analysts do not rule out further growth in the euro exchange rate. According to the forecasts of the 'Avant-garde Bank', the exchange rate of the hryvnia to the euro may fluctuate in the range of 46.5-51.5 hryvnias by the end of 2020. The dollar is expected to remain within 41.5-43.5 hryvnias.

According to leading expert of 'OTP Bank' Yevhen Miyutsa, the euro/dollar ratio may stand at around 1.2-1.25 by the end of the year. However, the director of analytical research department at 'Raiffeisen Bank' Oleksandr Pecheritsyn remains more cautious, believing that the euro/dollar exchange rate by the end of the year may be around 1.17.

The National Bank's position

The National Bank of Ukraine currently does not intend to change the principal currency formation currency from the dollar to the euro. The NBU emphasizes that their task is to maintain stability in the currency market, not to establish a target exchange rate for the currency.

Ukrainians now have the opportunity to purchase euros at a price approaching 50 hryvnias per unit, which has become a historic milestone. The sharp rise in the euro exchange rate is not a domestic phenomenon in our country, but a result of global processes, particularly the weakening of the US dollar. Future forecasts also predict further growth of the euro exchange rate, although the position of the National Bank remains unchanged, not defining a target exchange rate for the currency.

The rise of the euro exchange rate to around 50 hryvnias per unit is a historic phenomenon for Ukraine, caused by global economic processes and the weakening of the US dollar. Predictions indicate that this growth may continue, although the National Bank of Ukraine currently does not plan to intervene in exchange rate fluctuations, preferring to maintain stability in the currency market.