The Hryvnia Exchange Rate in October: What Determines the Stability of the Currency Market

In October, the currency market of Ukraine will be under significant passionate expectations and considerable challenges. According to Taras Lesovyi from Globus Bank, the Hryvnia exchange rate against the dollar will remain within a 'managed flexibility' range, but the demand for foreign currency may increase. Support from international partners, as well as the state budget's condition and the security situation, will significantly influence market trends.

The National Bank may consider a review of the discount rate, but the likelihood of lowering this rate is low due to the expected slowdown in inflation. Eliminating the budget deficit and supporting the stability of the Hryvnia is a task not for the faint of heart. The risks for the Ukrainian economy are hard to predict, but the National Bank promises to respond.