Ukrainian currency has stabilized

Following the devaluation of Ukrainian hryvna in 2013-2015 as a consequence of the Revolution of Dignity, the National Bank of Ukraine has implemented a number of currency stabilizing measures. This includes the requirement for the mandatory sale of 50% of the total sum of foreign currency proceeds from abroad by legal entities and entrepreneurs.

These measures have stabilized the currency, setting it at 26-27 UAH per USD with insignificant fluctuations. Despite continued worries about fluctuations, currently the exchange rate remains close to where it was at the start of 2018. It is helpful to keep in mind that historically speaking, Kyiv real estate prices decrease on a percentage basis far less than the hryvnia during a devaluation. For example, a 20% currency devaluation can translate into a 5% drop in real estate prices. Therefore, if the hryvnia devalues by less than 10%, no significant impact on real estate prices is expected.

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