The medium-term strategy of public debt management for 2018-2020, approved by the Cabinet of Ministers on August 22, suggests the strengthening of the hryvnia to U.S. dollar exchange rate in 2019 to UAH 29.4/$1 after devaluation this year to UAH 30.1 per $1.

According to the document, in 2020 the hryvnia rate is expected to decline to UAH 30.2/$1. At the same time, it was noted that professional market participants predict the gradual strengthening of the hryvnia exchange rate within the next five years as part of the normalization of monetary policy.

"From the point of view of public debt management, the potential strengthening of the hryvnia until 2020 will optimize the costs of servicing the state obligations of Ukraine denominated in foreign currency," the strategy says.

In addition, the Finance Ministry said the gradual increase in the nominal exchange rate contributes to the long-term equilibrium of the real effective exchange rate, which, according to the International Monetary Fund, is somewhat understated today.

Based on these forecasts, as well as the expected growth rates of real GDP by 3% in 2018 and 2019, and by 3.8% in 2020, the Ministry of Finance expects the growth of Ukraine's nominal GDP in dollars from $106.3 billion last year to $110.7 billion this year, $134.2 billion next year, and $147.4 billion in 2020.