The dollar exchange rate is not just a number on a stock exchange board. It directly affects the cost of products in stores, even if they are produced in Ukraine. Serhiy Mamedov, Vice President of the Association of Ukrainian Banks and Chairman of the Board of Globus Bank, explained in an interview with RBC-Ukraine how currency fluctuations are factored into the price of domestic products.

Hidden Currency Dependence

Many mistakenly believe that if a product is made in Ukraine, its price does not depend on the dollar exchange rate. The expert claims the opposite: the cost of production is almost always tied to currency factors.

Even for local manufacturers, imported components, logistics, and fuel are critically important. If the dollar rises, the cost of transporting cargo, purchasing packaging, fertilizers, and maintaining production equipment increases. Businesses are forced to factor these costs into the final price to remain profitable.

What Exactly Is Driving Up Prices?

According to Mamedov, prices are influenced not only by direct import purchases but also by indirect costs. Key factors tied to the exchange rate include:

  • Fuel and logistics (transportation of raw materials and finished goods);
  • Imported components and raw materials;
  • Fertilizers and agricultural machinery;
  • Energy solutions and business equipment.

However, the expert emphasizes that the dollar exchange rate is not the only price regulator. Food prices are also influenced by crop yields, energy supply stability, war risks, and production costs. The weakening of the hryvnia creates additional pressure but is not the only trigger.

Why Don't Prices Change Instantly?

Shoppers often notice that after a spike in the exchange rate, price tags in stores do not change immediately. Serhiy Mamedov explains this as a time lag. Retailers have stockpiles, old batches of goods, and marketing promotions that smooth out sharp fluctuations.

"If the rate changes by 20–30 kopecks, it does not mean that a washing machine or laptop will immediately become more expensive. But if the exchange rate trend becomes prolonged, businesses will sooner or later revise their prices," noted the banker.

Electronics and Home Appliances

A special category consists of goods that depend on imports to the maximum extent: home appliances and electronics. Most of these goods are imported or sold through official dealers. It is here that the influence of currency is felt most acutely.

Significant price increases occur when the exchange rate change is sharp or lasts for a long time. In such cases, importers are forced to purchase new batches of goods at a higher rate, which inevitably reflects in the final cost for the consumer.

Moderate fluctuations do not always prompt an immediate change in price tags, but a prolonged weakening of the national currency almost certainly affects the cost of imported appliances and electronics.