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Ukrainian Currency Collapse in a Basket of Goods

The Ukraine is in a state of turmoil. It experienced the annexation of Crimea last year at the hands of Russia the revolution. It is locked into an ongoing conflict with Russian separatists in the east. The economy contracted 8% last year, with a further 5.5% expected in 2015. Inflation is currently running at 25%. Even the central bank says this will not stabilise in 2015.

Foreign currency reserves have been all but depleted in trying to keep the gas flowing, and to also prop up the collapsing currency. These efforts were recently halted.

On February 21st 2014, the Ukrainian hryvnia stood at 12.23 to the euro. On 20th February 2015, it closed at 31.60, hitting yet another record low.

It represents a fall in the hryvnia to the euro of 61.3% in only 12 months. This also takes into account a bad year for the euro, which is going through its own crisis. It has led to the euro falling significantly to the dollar.

Foreign Currency

Anyone paying a visit to the country will know that euros, dollars and for that, any foreign currency are much in demand. Currency booths offer significantly better rates than official levels, such is the demand for foreign currency.

New Europe Investor recently paid a visit to Kiev. In the queue at the at the airport’s currency booth, a man offered his own exchange services, where he offer significantly better rates.

New Europe Investor looks at 15 everyday products and services in the Ukrainian capital, Kiev.

We have retrieved an average cost of these products and services in the local currency, the hryvnia from We then look at their equivalent value in euros, compared to what the price would have been exactly one year ago.

The table merely highlights the fall in the value of the hryvnia, by showing common items in euros, and does not look at the product prices in hryvnia last year.

Price in hryvnia

Feb 2015
Equiv euros

20th Feb 2015
Equiv euros

21th Feb 2014
12 Eggs
73 cents
1kg of Apples
38 cents
98 cents
1 Litre of Milk
35 cents
90 cents
Boneless Chicken
79 cents
2 kg of Potatoes
16 cents
41 cents
Domestic Beer in
25 cents
Metro Ticket
13 cents
33 cents
Monthly Public
Transport Ticket
8km Taxi Journey
2 Theatre Tickets
(Best Seats)
Cocktail in Downtown
Domestic Beer in
Neighbourhood Pub
70 cents
Cappuccino in Expat
79 cents
Big Mac Meal at
Lunchtime Menu in
Business District

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