Ukraine's central bank, citing the deep economic impact of the war with Russia, has devalued the hryvnya by 25 percent.
The bank said in a statement on July 21 that the new official rate for the currency is 36.5686 to the U.S. dollar.
The move was decided "in view of the change in the fundamental characteristics of Ukraine's economy during the war and the strengthening of the U.S. dollar against other currencies," the bank said.
"The war has been going on for almost five months, during which there have been significant changes, and under such conditions, the official exchange rate of the hryvnia at the level of February 24 no longer corresponds to reality and is gradually losing its role as an anchor for expectations," the statement said.
"Taking this into account, the National Bank has carried out a onetime correction of the official exchange rate...The new exchange rate will anchor the economy and give it stability in the face of uncertainty."
The devaluation comes a day after Ukraine asked its creditors for a two-year payment freeze on its international bonds in an attempt to focus its dwindling financial resources on repelling Russia.
