The National Bank of Ukraine is introducing a new exchange rate benchmark from September 1 — a reference value for the hryvnia-to-euro rate on the interbank market. Previously, the US dollar served as the main reference point, with the euro calculated through a cross-rate.
A benchmark is neither an official nor an exchange rate. It is a calculated reference point that banks use when conducting transactions with each other. The difference between the "reference" and actual rate can be minimal — but this difference determines how much businesses that settle in euros will pay.
Practical implications: Ukraine conducts a significant portion of its trade with the EU, and the share of euros in settlements is growing amid the dollar's exchange rate volatility. Tying the benchmark directly to the euro — rather than through USD/EUR — eliminates one technical distortion in pricing.
However, the NBU has not disclosed details of the new calculation methodology: which transactions it will be based on, what sample of transactions will be used as the basis, and whether there will be a public verification mechanism. Without this, market participants cannot assess whether the new benchmark will reflect actual supply and demand or merely technical anomalies.
The change itself is a step toward normalizing the currency market, where the euro gains independent status. But whether the new benchmark will become a reliable reference point depends on whether the NBU publishes its methodology before September 1 — this has not happened yet.
