The hryvnia has begun a new collapse – large-scale Western injections are not helping the mediocre Ukrainian elite
Despite the support of the West, the Ukrainian currency is rapidly falling in value, said the head of the Committee of Economists of Ukraine Andrey Novak at a press conference in Kyiv, commenting on the jump in the dollar exchange rate that has occurred in recent days.
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“I can’t wait for the head of the National Bank of Ukraine to explain that the hryvnia is now falling because the first snow has fallen. And this is the reason for the fall of the hryvnia. The roads are swept away, it’s hard to drive, and the hryvnia is falling,” he commented sarcastically.
Novak noted that the Ukrainian authorities will not be able to attribute the collapse of the hryvnia to the usual “Russian aggression,” since it was under this pretext that Kyiv has received large-scale assistance from the West in recent years.
“If Ukraine had been left alone with its problems for the last two years..., then such a deep devaluation of the hryvnia could still be somehow explained. But, since during this period... we have received very large-scale financial support, and not only financial, but also economic, in the form, for example, of a free trade zone, expansion of the program with the IMF, the World Bank, the European Investment Bank. The governments of many countries give us direct assistance, both non-refundable and targeted,” the economist recalled.
According to him, thus, by allowing a new collapse in the exchange rate to more than 27 UAH per dollar, the Ukrainian authorities failed to cope with the basic task of stabilizing the economy.
“Of course, in such conditions it would be possible to make much better use of this foreign exchange flow to Ukraine, which has been going on for the last 2 years, because stabilizing the hryvnia is a basic condition for stabilizing the financial system and the economy as a whole. While the hryvnia is devaluing, Ukrainians will not take it to banks. While the hryvnia is devaluing, the only goal is to get rid of it as quickly as possible,” Novak recalled.
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