The National Bank of Ukraine has updated its approaches to determining, calculating, and publishing money and foreign exchange market indicators. According to RBC-Ukraine, citing the regulator's press service, the NBU has approved a new edition of the relevant regulation, which introduces a new euro benchmark and revises the methodology for calculating the official foreign exchange rates. These changes take effect as part of the drive to increase transparency, reliability, and representativeness of market indicators, as well as to align the regulator's practices with international standards and IOSCO (International Organization of Securities Commissions) principles.
New Euro Benchmark: Calculation Mechanism
At the request of market participants, the NBU is introducing a new indicator: the reference value of the hryvnia-to-euro exchange rate as of 12:00 Kyiv time. The calculation of this benchmark is based on two components: the reference rate of the hryvnia against the US dollar as of 12:00 and the average value of hourly BFIX (Bloomberg Fixed Income Exchange) quotes for the US dollar against the euro between 10:30 and 12:00 Kyiv time. Thus, the new indicator is formed at the intersection of two independent market signals, which, according to the regulator, makes it more representative compared to previous approaches.
Practical Significance for the Banking Sector
The new benchmark will serve as a reference point for euro transactions between banks and clients. Furthermore, its introduction will simplify the conclusion of forward contracts in this currency, allowing market participants to settle transactions more promptly. For banks, this means a reduction in operational workload when determining the settlement rate for client operations, while for corporate and retail clients, it ensures more predictable conditions when converting and hedging euro liabilities.
Updated Methodology for Other Currencies and Precious Metals
In addition to the euro, the NBU has revised its approach to calculating the official hryvnia exchange rate against foreign currencies (other than the US dollar), Special Drawing Rights (SDRs), and the accounting price of banking metals. Going forward, the calculation will be performed using a similar principle: based on the official dollar exchange rate and the average value of BFIX quotes between 10:30 and 15:00 Kyiv time. A unified logic for all currencies and metals simplifies the methodological framework and reduces the risk of discrepancies between various calculation procedures.
Daily Publication of Expanded Data
With the introduction of the new regulation, the NBU commits to daily publication of additional data that was previously not disclosed on such a scale. Specifically, the regulator will reveal the number and volume of transactions included in the calculation of the official and reference dollar rates, their minimum and maximum values, as well as the type of settlement—under normal or special conditions. This allows market participants and analysts to assess the depth and stability of the formed exchange rate rather than being limited to a single numerical value.
Aligning Practices with International Standards
The NBU press release emphasizes that the updated methodology aims to bring domestic practices closer to IOSCO principles. For a regulator operating under sanctions pressure and heightened foreign exchange market volatility, this signifies a commitment to ensuring that Ukrainian market indicators remain recognizable and suitable for use by international counterparties. At a time when the hryvnia exchange rate against the dollar and euro remains one of the key macroeconomic reference points for business and the population, increasing the transparency of calculation procedures directly impacts trust in the institutional infrastructure of the financial market.
