Economist explained why the euro is rising and the dollar is falling in Ukraine today: world markets and inflation
Economist Vasyl Furman explained that there have been changes on world currency markets, so the dollar exchange rate has decreased, which, by the way, is also important for the Ukrainian economy, since we have high inflation, Politeka reports.
When we talk about the currency market of Ukraine, the guest of the program notes, we must remember that the National Bank sets the hryvnia exchange rate to the dollar every day, and cross rates are already taken in relation to other currencies. That is, he explains, the dollar and the euro or the dollar and the yen are taken from international markets, what cross rates they have are reviewed, and then this is translated into the hryvnia.
“When we see that the dollar is falling and the euro is rising in relation to the hryvnia, people cannot fully understand what is happening. Everything is happening very simply, because on the world currency markets the euro has grown significantly against the dollar,” Vasyl Furman claims.
The expert also recalls that back in November last year, when Trump had just won the US election, the dollar and euro exchange rate was almost one to one, and now 1 euro costs 1 dollar 15 cents. That is, he states, this is a rather significant increase of 15%, and the reasons for this are different, but the key consequence is the growth of the euro on the Ukrainian market.
“As for the dollar, everything is exactly the opposite. If we talk, for example, about March, April and now, we see that the hryvnia has grown. Yes, this is a slight increase against the dollar, but it was still pleasant for our citizens. And in fact, this is also very important for our economy, because today we have quite a lot of inflation - 14.6% as of March,” Vasyl Furman concludes.
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