Tether’s stablecoin USDT traded $1 above its close on exchanges trading the Ukrainian hryvnia (UAH) today.

USDT is trading above the close level in Ukraine

On the famous Kuna exchange of Ukraine, the USDT/UAH pair temporarily rose to UAH 36.9, which is equal to USD 1.26. Since then, the price of the trading pair has fallen to 32.03 UAH ($1.07).

Source: TradingView; Kuna.io

The same premium can also be seen on Binance and Exmo, where USDT/UAH pairs are currently around 32 UAH ($1.07).

These rates apply only to the USDT/UAH pair. However, a lower premium applies to other trading pairs: Kuna’s USDT/USD pair is priced at $1.03, which is close to the stablecoin’s $1 base.

The premium does not apply to Russian Ruble or USDC currency pairs, both of which are close to $1. Kuna has a total of 42 Tether trading pairs.

This spread appears only on the Ukrainian markets. On US exchanges, Tether pairs are very close to $1 as intended.

This bounty was seen around the same time that Russia declared war on Ukraine. Tensions have devalued the Ukrainian hryvnia over the past week. Representative Kuna said that Tether’s domestic supply of stablecoin USDT is also limited. Both factors appear to have led to the discrepancy seen over the past two days.

Despite the popularity of kuna in Ukraine, kuna is a rather small exchange. The exchange’s 24-hour trading volume is just $4.8 million, while the top US exchanges process billions of dollars a day. Kuna has only 400,000 active accounts.

The conflict between Russia and Ukraine has also led to many shared economic constraints. Ukraine has enacted a ban on issuing digital cash in a bid to curb the outflow of funds. Various countries have now imposed sanctions on Russia.

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