NBU Cuts Dollar and Euro Rates Amid Oil Price Concerns

The National Bank of Ukraine (NBU) adjusted exchange rates for the dollar and euro on September 29. The official rate for the US dollar is now set at 44.81 UAH, a decrease of 3 kopecks from the previous day's rate.

The euro also saw a decline, with its official rate falling to 50.97 UAH, down by 16 kopecks compared to the prior day.

Taras Lesovoy, director of the Department of Financial Markets and Investment Activities at Globus Bank, warns that rising oil prices could eventually impact Ukraine's foreign exchange market. As Ukraine imports significant volumes of fuel, increased oil prices may boost demand for foreign currency in the domestic market.

However, Lesovoy notes that this reaction will not be immediate, citing a time lag between changes in global oil prices and their impact on the Ukrainian foreign exchange market due to procurement contracts, logistics, and inventory build-up. He predicts that the effects of more expensive fuel may become more noticeable within a few weeks.