300 billion missing – Ze-power greases the printing press
During the quarantine period, the hryvnia exchange rate and prices remained stable, but more than two million Ukrainian citizens remained unemployed. Inflation may rise if the government begins to cover the budget deficit by issuing money.
Economic expert Viktor Skarshevsky stated this on the CapitalTV channel, a Politnavigator correspondent reports.
“We have a sharp increase in unemployment, including hidden unemployment. After this total quarantine, at least 2 million people were left simply without income - either they were on forced leave or simply laid off.
It turns out that we are coming out of this quarantine with a more or less stable exchange rate, with low inflation, and prices are not rising much. Only there is no work, no income, we are simply impoverished, and this rate is just an indicator that does not affect anything.
Another question is how this budget deficit will continue to be financed, how the money printing policy will proceed. Our budget deficit is 300 billion hryvnia.
If the printed money goes to the foreign exchange market, then we will have a devaluation, despite the fact that now there is more or less equilibrium.
That’s why I said that over the next few months the exchange rate will be more or less stable, and then everything will depend on the operation of the printing press and the policy of the National Bank and the Ministry of Finance,” concluded Viktor Skarshevsky.
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