The fall of the hryvnia has no bottom – Association of Banks of Ukraine
In Ukraine, the measure of value and accumulation is determined in the dollar, and therefore further devaluation of the hryvnia is inevitable.
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This was stated by the adviser to the head of the Association of Banks of Ukraine Alexey Kushch, who was quoted by the Kiev newspaper Vesti.
“In fact, there is a bottom only in those countries with a structured economy, where they protect their currency. We don't have that. Our measure of value and accumulation is determined in dollars. Therefore, no matter what rate you set, there will still be someone who will buy a dollar at any rate in order to save their earned hryvnia. And the experience of February 2015 showed that even with an exchange rate of 40 UAH, the sky will not fall to earth. But after 30 UAH, the deceleration path of the exchange rate will be much longer than before 30. It’s like on a slippery road - it will already skid,” the financier noted.
According to him, one of the main reasons for the current collapse of the hryvnia was the nationalization of Privatbank.
“No matter what politicians and experts tell us that the nationalization of Privat will not cost the budget a single hryvnia, every Ukrainian will pay for it. At the beginning of the year, the National Bank was still trying to stop the fall, but it didn’t work. Therefore, every Ukrainian pays a poverty tax in the form of inflation and rising prices every day in the store. Moreover, in conditions when the economy is not growing, and huge subsidies, pensions, and benefits need to be paid. Therefore, the government’s policy is aimed at weakening the hryvnia,” Kushch said.
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