Why hryvnia is more expensive than rubles - the main reasons

People are interested in the question of why the hryvnia is more expensive than rubles. It seems that countries are close by. Many people consider Russia to be a very advanced state economically. But what then is the reason that the hryvnia is a stronger currency? This question is quite complicated. There is no unequivocal opinion. Therefore, this article is only hypothetical, based on known historical and economic data. Let's understand them.

The economy does not live by a single course

In general, if we analyze the experience of many countries, one important conclusion can be drawn. The level of development of the economy is far from always connected with the exchange rate. For example, take at least Belarus. It among all countries of post-Soviet space takes almost the first place in terms of living standards. Why such a success in this country? After all, the Belarusian ruble is a very weak currency. But is the standard of living in this country high?

The fact is that Belarus is an export-oriented country. The success of the country depends on the quantity of goods sold abroad. If we consider Russia and Ukraine, we can draw the following conclusions. Russia mainly exports oil. And all of its economy is tied to processing products. This makes the economy dependent on oil prices. Then why are the hryvnia more expensive than rubles?

As for Ukraine, then in this country for export is a very small proportion of goods. This is what makes it vulnerable in the future. This in no way can positively affect the rate of the hryvnia, which for almost 20 years now (the hryvnia was introduced in 1996) is constantly falling. First rate was 1.76 hryvnia per dollar. And now - 24 hryvnia. Thus, the currency has fallen in price a little more than ten times. But why are the hryvnia more expensive than rubles so far?

Reasons for the value of hryvnia

It seems that the crisis in this currency is not terrible. Despite the deplorable situation, the hryvnia continues to be a fairly strong currency. For the year after the crisis in 2014 (at the same time, the ruble gained in price), the prices grew disproportionately to the currency. It also means a lot. But why are the hryvnia more expensive than rubles?

• The historical reason. In Russia there were no currency reforms of this scale and level of success, as it was in Ukraine. Consequently, the hryvnia is a younger currency.
• Political reason. The authorities are doing everything possible to artificially hold the exchange rate. Consequently, the actual value of the hryvnia is much less than that declared by the National Bank of Ukraine. Especially if you pay attention to the ever growing external debt of this country.
• The level of citizens' confidence in this currency. It turns out that he also affects the course. Although in the course of the crises of 2008 and 2014-15, the level of trust has fallen, it is still higher than that of Russians. If the last ruble was always called "wooden", then in the case of the hryvnia, the lowering of trust began relatively recently. And this affects what currency is in use.

That's why the hryvnia costs more than the ruble. But it is important to note a sad tendency. Still, the Ukrainian currency depreciates much faster than the ruble. Therefore, one can always make the assumption that inflation will only increase and soon the hryvnia will depreciate even more.

Reasons for the fall of the ruble

In the case of the ruble, everything is simple. During the crisis of 2014, there were such reasons for the fall of the ruble:

• Sanctions. You can say as much as you want that the sanctions to the country at all. But this factor really means a lot. The global economy is increasingly experiencing the processes of globalization. Thus, if a country, no matter what it is, is under sanctions, it is cut off and isolated from the world. And deprived of useful economic ties. In the case of the macrocosm, the situation is the same as with the microsociation. If a large social group separates from the world community, it ends with the same thing that desocialization (falling out of society) of an individual results in. Even in the animal kingdom, an individual without a herd or flock is doomed to perish.
• Cheaper oil. As Russia is one of the largest oil exporters, its cheapening reduces the state's revenues. Consequently, the treasury is emptying, and the currency is falling.

However, the ruble is becoming cheaper more slowly than the Ukrainian currency. It is also important to understand.

Hryvnia to the ruble today

At the moment, the approximate rate of the hryvnia to the ruble is 1: 3. Thus, for 30 rubles you can buy ten hryvnia. In this case, there is a difference in prices for products. Bread in Russia costs about 40 rubles per 1 kg (sometimes a little cheaper), and in Ukraine - about 20 (in the given prices). Thus, prices in the neighboring state are slightly lower than in Russia. Although it still depends on the goods. But as far as food products are concerned, this is indeed the case.

conclusions

Therefore, you must understand one truth: you can not just take and divide the price by three. For example, in Ukraine beer costs 10-12 hryvnia per 0.5 liters. And now just multiply this number by three. What will happen? Somewhere about 30 rubles. And how much beer costs in Russia? As you can see, in Ukraine, food products are really cheaper. And the dollar rate has nothing to do with it. In general, we figured out why the Ukrainian hryvnia is more expensive than the ruble.