Ukraine's central bank on Thursday devalued the national currency by 25% against the greenback in order to protect its foreign exchange reserves as the ongoing war continues to batter its economy.

The move comes a day after it was reported that Ukraine had requested foreign debt payments from key creditors.

It altered the official exchange rate of the hryvnia to the US dollar by 25%, to UAH/USD 36.5686, according to a statement from the National Bank of Ukraine (NBU). The decision was motivated by a shift in the fundamental parameters of the economy, it said.

- This step will improve the competitiveness of Ukrainian producers, converge exchange rate conditions for different groups of businesses and households, and support the resilience of the economy during the war - it added.

The adjustment of the official hryvnia exchange rate will have only a limited impact on the acceleration of price growth, the central bank asserted, adding that "instead, fixing the official rate at a new, more stable level will allow the NBU to keep price developments in Ukraine under control."

- Changing the exchange rate will raise inflows, and thus sales of foreign currency revenues by exporters, minimize the speculative behavior of market participants, and allow stabilizing exchange rate expectations - the bank said.