Economist: Ukrainian currency is depreciating, there is war, there are no reforms
Kyiv, August 12 (Navigator, Yuriy Kovalchuk) – Due to the rise in the dollar exchange rate, Ukrainians lost 10% of their income in 10 days. The reason for the growth is the incompetence of the government, said Doctor of Economic Sciences, ex-deputy head of the National Bank of Ukraine Alexander Savchenko on Hromadske TV.
Subscribe to the news “Navigator - Kiev” в Facebook, Classmates or In contact with
“Ukrainians should expect a decrease in income due to the new dollar exchange rate and increased inflation. If your income is in hryvnias, then they have fallen by about 10% over the last 10 days. According to my calculations, a 10% devaluation in Ukraine leads to 5% inflation. This is happening because our economic bloc and the National Bank have not started reforms. Apart from raising taxes and tariffs, nothing is happening - and these are not reforms. Nothing is happening in the economy,” says the expert.
Alexander Savchenko believes that the reasons for the growth of the dollar lie in the war, the economic downturn and the upcoming elections.
“Economic factors form the general trend of the exchange rate - now it is negative because the economy is falling. In addition, there are socio-psychological factors. In our case, another factor such as war is a destabilizing factor that dramatically affects the exchange rate. Now we also have the election factor, and before elections the hryvnia always falls. This is happening because citizens expect instability, and some deputies, unsure of whether they will get into the new parliament, are preparing to retreat and begin to withdraw their capital. As a result, there is less currency and its rate is rising,” says Savchenko.
Alexander Savchenko also believes that the main reason for the devaluation is the incompetence of the government.
“The unprofessional actions of the parliament and the National Bank, which led to the taxation of deposits and exports, led to the fact that foreign exchange profits begin to linger abroad and do not return to Ukraine. First of all, the competence of our economic bloc is a destabilizing factor. Now there is real amateurism going on there,” the expert said.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.