Foreigners are hastily withdrawing previously invested capital from Ukraine
The current collapse of the hryvnia is explained by the fact that foreigners are withdrawing currency from Ukraine, where they could not reach an agreement with the IMF and are preparing for elections.
The Kiev online newspaper writes about this “Country", indicating that fluctuations in the foreign exchange market were expected by mid-summer, but not everyone was ready for the events of this week.
Thus, by the evening of July 24, the non-cash rate reached 26,57 - 26,58 hryvnia per dollar, which is an absolute record for the interbank market this summer.
The main reason for the current fall of the hryvnia is said to be payments by the Ministry of Finance of Ukraine on government bonds. Thus, today the ministry will repay government bonds that were placed in the winter. This is over two billion hryvnia, a significant part of which will end up in the hands of foreigners.
“They are now fleeing countries with developing economies, and primarily from those where they cannot reach an agreement with the IMF and prepare for presidential elections. With people like Ukraine. A short conversation with them - take all the invested capital, convert it into dollars and bring the capital home. This is what is happening now,” the publication summarizes. – Nothing unexpected – just a couple of days earlier than expected. Not on July 26-27 (after payment from the Ministry of Finance), but on the 23-24th. Some non-residents decided to play it safe and cheat: they resold government bonds to banks and investment funds, and began buying in dollars earlier - until its exchange rate rose.”
Let us recall that in just four years after the 2014 coup d’etat, the Ukrainian national currency devalued more than three times against the US dollar.
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