<p>You can read the exact details on the website of the <a href="https://bank.gov.ua/en/news/all/mvf-ukrayina-list-pro-namiri-07-bereznya-2022-roku" rel="nofollow noreferrer">National Bank of Ukraine</a> - download the IMF document.</p>
<p>It has little to do with so called repatriation, as suggested in a comment. In fact, people try to get cash out of the country and convert it into other currencies.</p>
<p>There are foreign exchange controls in place that fixed the FX rate at roughly the level prevailing on Feb 24, and only limited interbank trading is allowed.</p>
<p>Apart from actual trading, cash withdrawals are limited as well.</p>
<p>Trader's do perceive this at serious risk. That said, your desk would usually not celebrate you as a hero if you were to short a country like the Ukraine right now, irrespective of the intervention or not.</p>

CC BY-SA 4.0
2022-03-18T08:10:15.130Z
Thanks AKdemy!
I am wondering though: are the foreign exchange controls imposed by Ukraine only, or do they depend on the cooperation of authorities in other countries?
Co Stuifbergen
CC BY-SA 4.0
2022-03-16T20:26:37.430Z
2022-03-16T20:26:37.430Z
AKdemy
<p>The value of the Hryvnia, has hardly been affected by the Russian invasion of Ukraine on 21 february.
<a href="https://www.google.com/search?channel=fs&amp;client=ubuntu&amp;q=hryvnia+to+euro" rel="nofollow noreferrer">https://www.google.com/search?channel=fs&amp;client=ubuntu&amp;q=hryvnia+to+euro</a></p>
<p>I can think of several reasons why Ukrainian currency would have taken a severe blow:</p>
<ul>
<li>2.8 million refugees (on a population of around 41 Million), many of whom will change Hryvnias for foreign currency</li>
<li>the risk that a Russian-imposed government may impose restrictions on the exchange of currency, or doesn't have take appropriate measures to ensure the value of the national currency,
or even</li>
<li>the risk that a new government introduces a new currency and declares the previous currency invalid</li>
</ul>
<p>Apparently, traders don't perceive these as serious risks.</p>
<p>What is keeping the exchange rate of Ukrainian currency stable, despite the risks mentioned above?</p>
<p>Or am I over-estimating the risks?</p>

CC BY-SA 4.0
2022-03-16T18:43:35.500Z
I was unable to find it, but I remember reading somewhere that a natural disaster may actually strengthen a country's currency. There were several proposed explanations, such as influx of foreign donations. After the Fukushima nuclear disaster on March 11th, 2011, there was a [sudden appreciation of the Yen against the USD](https://www.theguardian.com/business/2011/mar/17/japan-crisis-yen-surges-nikkei-falls). This was reversed by day's end, but a slower appreciation followed for approx. two months.
Giskard
CC BY-SA 4.0
2022-03-17T06:26:13.003Z
By the way I don’t know how you define currency suffering but the war with Russia started in 2014 and since then Hryvnia lost about 2/3 of its value… That’s a lot
1muflon1
CC BY-SA 4.0
2022-03-18T08:02:00.040Z
Thanks 1muflon, I hadn't looked so far back.
However, in my recollection, in 2014, Russia didn't try to conquer all of Ukraïne.
So if a dispute about a part of the territory already has such an impact on the currency, I would expect an even bigger impact in the current circumstances.

Apparently, Ukraine has prepared itself very well this time.
Co Stuifbergen
<currency><exchange-rates>
Why doesn't Ukrainian currency suffer from the war?
Co Stuifbergen
# Why doesn't Ukrainian currency suffer from the war?

(Asked by: username_0 on 2022-03-16)

The value of the Hryvnia, has hardly been affected by the Russian invasion of Ukraine on 21 february.
<https://www.google.com/search?channel=fs&client=ubuntu&q=hryvnia+to+euro>

I can think of several reasons why Ukrainian currency would have taken a severe blow:

* 2.8 million refugees (on a population of around 41 Million), many of whom will change Hryvnias for foreign currency
* the risk that a Russian-imposed government may impose restrictions on the exchange of currency, or doesn't have take appropriate measures to ensure the value of the national currency,
  or even
* the risk that a new government introduces a new currency and declares the previous currency invalid

Apparently, traders don't perceive these as serious risks.

What is keeping the exchange rate of Ukrainian currency stable, despite the risks mentioned above?

Or am I over-estimating the risks?

**Tags:** currency, exchange-rates
> **Comments:**
> **username_1**: I was unable to find it, but I remember reading somewhere that a natural disaster may actually strengthen a country's currency. There were several proposed explanations, such as influx of foreign donations. After the Fukushima nuclear disaster on March 11th, 2011, there was a [sudden appreciation of the Yen against the USD](https://www.theguardian.com/business/2011/mar/17/japan-crisis-yen-surges-nikkei-falls). This was reversed by day's end, but a slower appreciation followed for approx. two months.  
> **username_2**: By the way I don’t know how you define currency suffering but the war with Russia started in 2014 and since then Hryvnia lost about 2/3 of its value… That’s a lot  
> **username_0**: Thanks 1muflon, I hadn't looked so far back. However, in my recollection, in 2014, Russia didn't try to conquer all of Ukraïne. So if a dispute about a part of the territory already has such an impact on the currency, I would expect an even bigger impact in the current circumstances.  Apparently, Ukraine has prepared itself very well this time.  

---

## 1 answers

### Answer by username_3 on 2022-03-16. Score: 3 | Accepted answer

You can read the exact details on the website of the [National Bank of Ukraine](https://bank.gov.ua/en/news/all/mvf-ukrayina-list-pro-namiri-07-bereznya-2022-roku) - download the IMF document.

It has little to do with so called repatriation, as suggested in a comment. In fact, people try to get cash out of the country and convert it into other currencies.

There are foreign exchange controls in place that fixed the FX rate at roughly the level prevailing on Feb 24, and only limited interbank trading is allowed.

Apart from actual trading, cash withdrawals are limited as well.

Trader's do perceive this at serious risk. That said, your desk would usually not celebrate you as a hero if you were to short a country like the Ukraine right now, irrespective of the intervention or not.

> **Comments:**
> **username_0**: Thanks AKdemy! I am wondering though: are the foreign exchange controls imposed by Ukraine only, or do they depend on the cooperation of authorities in other countries?  

---

