From April 4, 2014, the official exchange rate of the hryvnia against foreign currencies and benchmark prices for banking metals shall be set by the National Bank of Ukraine day-to-day, for each business day, and shall be valid from the moment they are set till the next review.

“The official hryvnia exchange rate against US dollar shall be set as a weighted average of exchange rates quoted by buyers and sellers in Ukrainian interbank foreign exchange market on the current working day based on the data from the System of Confirming the Agreements on the interbank foreign exchange market of Ukraine,” reads NBU Board Resolution No. 180, dated March 31, 2014, amending the Regulation on setting the official exchange rate of the hryvnia against foreign currencies and benchmark prices for banking metals. The resolution was registered with Ukraine’s Ministry of Justice on April 1, 2014, as No. 375/25152.

As is known, in accordance with earlier practice, the hryvnia exchange rate against hard currencies and the currencies of the countries being Ukraine’s main trading partners as well as benchmark prices for banking metals took effect on the next business day after the day of their approval. According to Resolution No. 180, the official exchange rate of the hryvnia against foreign currencies and benchmark prices for banking metals shall be effective from the moment they are set on the day of their approval.

The official hryvnia exchange rate versus US dollar shall be set as a weighted average of exchange rates quoted by buyers and sellers in the market, for the current business day by compiling the USD purchases/sales, without ±2% possible exchange rate deviation previously stipulated.

The exchange rate of the hryvnia against other foreign currencies and benchmark prices for banking metals shall be set based on the rates quoted in the international currency markets and the UAH/USD official exchange rate established on the current business day.

Starting from February 7, 2014, the National Bank of Ukraine the National Bank of Ukraine will determine the official UAH/USD rate calculated as a weighted average rates quoted, i.e. according to trading in the interbank forex market of Ukraine.

The legal framework is in place for the new rules. According to Ms. Olena Shcherbakova, Director of General Department of Monetary Policy of the National Bank of Ukraine, the amended rules on fixing the official exchange rate of the hryvnia against foreign currencies and setting benchmark prices for banking metals will enable the National Bank of Ukraine to switch to a floating exchange rate and settle Ukraine's external obligations. They will also help save the international reserves and enhance the transparency and efficiency of the NBU's foreign exchange policy.

“The move is in line with the global trends and practices of the world's leading central banks,” said Ms Olena Shcherbakova. According to her, the National Bank of Ukraine is set to establish and publish the official exchange rate of the hryvnia each business day after 12.00 p.m.

In addition, this resolution clarifies the changes to the names and codes of some foreign currencies against which the National Bank of Ukraine sets the official exchange rate of the hryvnia.