People are interested in the question of why hryvnias are more expensive than rubles. It seems that the countries are nearby. Many people consider Russia a very economically advanced state. But then what 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 in nature, based on well-known historical and economic data. Let's understand them.
The economy does not live a single course
In general, if we analyze the experience of many countries, we can make one important conclusion. The level of economic development is not always associated with the exchange rate. For example, take at least Belarus. Among all the countries of the post-Soviet space, it occupies almost the first place in terms of living standards. Why is this country so successful? 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 a country depends on the number of goods sold abroad. If we consider Russia and Ukraine, then we can draw the following conclusions. Russia mainly exports oil. And her entire economy is tied to processed products. This makes the economy dependent on oil prices. Then why are hryvnias more expensive than rubles?
As for Ukraine, a very small share of goods is exported in this country. That is what makes her vulnerable in the future. This in no way can positively affect the hryvnia exchange rate, which for almost 20 years (the hryvnia was introduced in 1996) has been constantly falling. At first, the rate was 1.76 hryvnia per dollar. And now - 24 hryvnia. Thus, the currency fell a little more than ten times. But why are hryvnias more expensive than rubles so far?
Reasons for the cost of hryvnia
It seems that the crisis of this currency is not terrible. Despite the deplorable situation, the hryvnia continues to be a fairly strong currency. In the year after the crisis of 2014 (the ruble also rose in price at the same time), prices rose disproportionately to the currency. It also means a lot. But why are hryvnias more expensive than rubles?
- Historical reason. In Russia, there were no currency reforms of such scale and level of success as it was in Ukraine. Consequently, the hryvnia is a younger currency.
- The political reason. The authorities are doing everything possible to artificially keep the exchange rate. Consequently, the actual cost of the hryvnia is much less than that declared by the National Bank of Ukraine. Especially if you pay attention to the constantly growing external debt of this country.
- The level of confidence of citizens in this currency. It turns out that he also affects the course. Although the level of trust fell during the crises of 2008 and 2014-15, it is still higher than that of the Russians. If the last ruble was always called "wooden", then in the case of the hryvnia, the decline in confidence began relatively recently. And this affects what currency is in use.
That is why the hryvnia is more expensive than the ruble. But it is important to note the sad trend. Still, the Ukrainian currency depreciates much faster than the ruble. Therefore, you 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 2014 crisis, the following reasons for the fall of the ruble stood out:
- Sanctions. You can say as much as you like that sanctions are nothing to the country. But this factor really means a lot. The global economy is increasingly experiencing globalization. Thus, if a country, regardless of what it is, is undergoing sanctions, it is cut off and isolated from the world. And loses useful economic ties. In the case of the macro-social, the situation is the same as with the micro-social. If a large social group is separated from the world community, it ends with the same thing that leads to the desocialization (loss of society) of an individual. Even in the animal world, an individual without a herd or flock is doomed to death.
- Cheaper oil. Since Russia is one of the largest exporters of oil, its cheapening reduces state revenues. Consequently, the treasury empties and the currency falls.
However, the ruble is becoming cheaper cheaper than the Ukrainian currency. This is also important to understand.
Hryvnia to 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. However, there is a difference in product prices. Bread in Russia costs about 40 rubles per 1 kg (it can be a little cheaper), and in Ukraine - about 20 (in the given prices). Thus, prices in a 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 true.
conclusions
Therefore, you must understand one truth: you can’t just take and divide the price into three. For example, in Ukraine, beer costs 10-12 hryvnias per 0.5 liter. Now just multiply that number by three. What happens? Somewhere around 30 rubles. And how much beer is in Russia? As you can see, in Ukraine, food products are really cheaper. And the dollar exchange has nothing to do with it. In general, we figured out why the Ukrainian hryvnia is more expensive than the ruble.