Last year, the hryvnia exchange rate was stable due to rising prices for raw materials and, accordingly, foreign exchange earnings, but this year a fall in prices for raw materials is predicted, and therefore the rate will sink.
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Economic expert Viktor Skarshevsky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“In 2018, the foreign economic situation will worsen. Metal and ore prices will be lower than last year. Why did the hryvnia show such extraordinary stability last year? The foreign economic situation helped. Metal and ore prices increased by 40%. Therefore, the exchange rate is stable. In 2018, the gap between the supply of currency and the demand for it will be much greater than in the past. The trade deficit will continue to grow. Now it is about 8 billion dollars, and compared to 2016 it has increased by 2 billion. The same trend will continue this year,” Skarshevsky warned.