From March 31, 2015, the official exchange rate of the hryvnia against foreign currencies and that of banking metals in respect of which the official exchange rate (hereinafter – the official hryvnia exchange rate)  should be set on a daily basis shall be set at the end of a business day and shall become effective on the next business day.

Thereafter, the official hryvnia exchange rate, which is:

• set for the last business day of the week or the day before public holiday shall remain effective through weekends and public holidays;
• set on the last business day of the week or on the day before public holiday shall become effective on the first business day of the next week or on the first business day following public holidays;

The official hryvnia exchange rate against foreign currencies in respect of which the official exchange rate should be set on a monthly basis shall be set on the last business day of the month and shall remain effective through the next calendar month.

The National Bank of Ukraine shall announce the official exchange rate and publish it on its official website by 6 p.m. the same day it is set.

Under the existing rules, the official hryvnia exchange rate is announced and published in the middle of the business day and becomes effective from the moment it is set.

From March 31, 2015, the official UAH/USD exchange rate shall be calculated as a weighted average of exchange rates quoted by buyers and sellers under all the agreements concluded on “tod”, “tom”, and “spot” terms on the day of setting the official exchange rate based on the data from the System of Confirming the Agreements in the interbank foreign exchange market of Ukraine operated by the National Bank of Ukraine.

Under the existing rules, the official UAH/USD exchange rate is calculated as a weighted average of exchange rates quoted by buyers and sellers under the current business day transactions rather than under the concluded agreements. Thus, the existing methodology for calculating the official exchange rate factors in the agreements concluded in the previous days, with the settlement day that falls on the current business day, thus leaving out the agreements concluded on the current business day with the later settlement date.

It should be noted that the exchange rate of the hryvnia against other foreign currencies and banking metals is calculated based on the official UAH/USD official exchange rate and recent available information on the rates quoted in the international currency markets.

The new rules are in line with commitments undertaken by Ukraine under the Extended Fund Facility, approved by NBU Board Resolution No 194, dated March 19, 2015, On Amendments to the Regulation on setting the official exchange rate of the hryvnia against foreign currencies and the rate of banking metals  and NBU Board Resolution No 195, dated March 19, 2015, On Amendments to the Rules for setting the official exchange rate of the hryvnia against foreign currencies and the rate of banking metals. The aforementioned resolutions come into force from March 31, 2015. 

Director of the NBU Open Market Operations Department Oleh Churiy said that the new rules for setting the official hryvnia exchange rate would make it easier for banks and economic entities to use the official exchange rate for accounting purposes and other operations involving the use of the official exchange rate. The streamlined calculation techniques will help align the official exchange rate with the market quotations of the hryvnia against foreign currencies and banking metals.

For reference

The National Bank of Ukraine sets the official hryvnia exchange rate without placing an obligation to perform transactions involving the purchase or sale of foreign currency and banking metals at this exchange rate. The official exchange rate of the hryvnia against foreign currencies and banking metals is used by residents and non-residents of Ukraine for accounting purposes to record transactions in foreign exchange and banking metals.