On 19 February 2025, the Money and Foreign Exchange Market Indicators Oversight Council (the Oversight Council) conducted the third regular review of the UONIA money market indicator and FX market indicators (the official hryvnia exchange rate against foreign currencies, accounting prices for investment metals, and the hryvnia reference exchange rate to the U.S. dollar).
This twice-a-year review is aimed at detecting any structural changes in the market and/or other grounds that may indicate a need to replace existing indicators, adjust their methodology, or address other important aspects of their calculation and publication.
Key takeaways from the review’s findings:
Although the current methodology for calculating UONIA is not perfect, it retains its capacity to serve as an objective indicator of the money market. That said, there is a need to find ways to improve the UONIA calculation methodology.
NBU structural units are recommended to continue to explore the issue with international technical assistance.
The official/reference UAH/USD exchange rate and its calculation methodology currently meet the market’s conditions and needs. The FX market’s trading volume is fairly sufficient to calculate reliable indicators based on the UAH/USD exchange rate. Currently, the methodology or other procedures for estimating and releasing the UAH/USD exchange market indicators do not require any changes.
The currency makeup of FX market transactions confirms the status of the U.S. dollar as the main exchange-rate-shaping currency. Interbank trading in the UAH/EUR segment is negligible. Instead, euro had been trending up in other segments of the FX market paving the way for a possible migration from the U.S. dollar to the euro pegging the hryvnia exchange rate.
The implementation is ongoing for the previously approved proposals on shifting to a uniform list of currencies for estimating the exchange rate and the new reference value of the UAH/EUR exchange, and on changing the methodology for estimating the official exchange rate of other currencies (save for the U.S. dollar). As of 31 March 2025, approaches were revised to determining the list of currencies for which the official exchange rate is set daily, and the list of currencies for which the official exchange rate is set monthly was cancelled.
Notifications on the results of periodic reviews of money market and FX market indicators are available here:
The Oversight Council was launched on 18 August 2023. This collective decision-making body includes NBU employees, as well as external members recommended by the Money and Foreign Exchange Markets Contact Group.
The Oversight Council is tasked with working out and discussing the issues related to the definition, calculation, and publication of money market and FX market indicators. Such issues include:
- assessment of representation performance of money market and FX market indicators
- definition and adjustment of the methodology behind money market and FX market indicators
- oversight of the internal control system
- error-handling policy
- review of audit results
- prevention of conflicts of interest
- consideration of claims
- data quality control supervision
- compliance of money market and FX market indicators with IOSCO principles.
The Oversight Council is an advisory body. Any and all decisions regarding money market and FX market indicators are made by the NBU Board.