On Ukrainian TV they claim that the strengthening of the hryvnia against the dollar is bad for exporters and it will be better if the Ukrainian currency continues to fall. Secretary of the Verkhovna Rada of Ukraine Committee on National Security and Defense Ivan Vinnik stated this on TV channel 112, a PolitNavigator correspondent reports.
According to him, the stronger the hryvnia, the more expensive Ukrainian products are, and this is supposedly bad for domestic exporters.
Subscribe to PolitNavigator news at Telegram, Facebook, Classmates or In contact with
“Ukrainian exports will grow - the flow of foreign currency into the state will increase against the backdrop of a decrease in the load on imports and against the backdrop of a lack of growth in the cost of fuels and lubricants, and so on.
If Ukrainians consume less due to energy-saving consumption of these materials or resources that we import today, this will reduce the burden on the balance of payments for imports, accordingly, the demand for the dollar will be less and the hryvnia will strengthen.
Another question is whether Ukrainian exporters are interested in seeing the hryvnia strengthen against foreign currency. In this case, Ukrainian goods on foreign markets will become more expensive and, accordingly, less attractive.
If we take economic theory, they are interested in the option that exists today. Any strengthening of the domestic currency will make their goods more expensive in foreign currency terms. Accordingly, they will become less attractive in foreign markets.
I’m not sure that the strengthening of the hryvnia is an interesting position for Ukrainian exporters,” Vinnik said.