Official Hryvnya exchange rate rises from UAH/USD 4.85 to 4.852

Yesterday the National Bank of Ukraine revised the official hryvnya exchange rate from UAH/USD 4.85 to 4.852, after keeping it stable for five days after revaluation from UAH/USD 5.05 to 4.85 on May 21. Yesterday hryvnya dropped 2% interbank to UAH/USD 4.82. Andrii Parkhomenko: We view this move as reassuring, indicating that the NBU will not maintain a fixed exchange rate (the previous rate of 5.05 had been maintained for more than three years) and could change it on a daily basis. However, the reason for raising rate to 4.852, as well as the methodology for setting the official rate in the future are not yet clear. According to Petro Poroshenko, NBU supervisory board chairman, on June 7, it is likely to set a new exchange rate corridor (admissible range for interbank trading), which could be wider than the current 4.95-5.25 guidance (see our macro report later today).