As noted in the Atlantic Council, in the fall of 2022 Ukraine was forced to print money, and in December 2022, inflation rose to 27%. However, the budget deficit was offset with $40B of international aid. As a result, inflation fell to 5% by October 2023.
For 2024, Ukraine had $41B in planned external financing, but the figure has since been revised to $37B.
Moreover, from January to September 2023, tax collections increased by 23% compared to the same period in 2022. Despite wartime conditions, Ukraine has not yet experienced any issues with financing social benefits.
In addition, the National Bank has demonstrated positive dynamics by reducing the discount rate from 16% to 15% in the last few months and issuing affordable loans for the Ukrainian population.
Ukraine maintains a relatively open foreign exchange market with a floating exchange rate that remained relatively stable throughout 2023.
Ukraine’s international currency reserves are currently higher than ever, amounting to about $40B.
It is noted that, far from the front line, everything operates normally and appears stable.