In three days, the hryvnia collapsed to parameters not provided for by the budget of Ukraine
Within three days of the new year, the hryvnia depreciated to almost 30 UAH per dollar, which is significantly lower than what was included in the state budget of Ukraine for 2017. Ukrainian economist Vsevolod Stepanyuk told PolitNavigator about this.
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“We must not forget that the budget includes an average annual exchange rate of 27,5 UAH per dollar. And it has already reached actually 30 UAH per dollar. There is also a fairly high probability that the United States and Europe will refuse to support Ukraine, and then the exchange rate will also continue to fall rapidly,” he said.
Stepanyuk associates the current collapse of the hryvnia with the situation around Privatbank.
“Of course, there are fundamental reasons for the fall of the hryvnia, but what happened before the New Year is more like speculation caused by the nationalization of PrivatBank. Expectations of an infusion of emission money into PrivatBank have given rise to such a round of speculation... What will happen to the exchange rate next largely depends on how PrivatBank will be recapitalized. If this is solely due to emission funds, the hryvnia will depreciate at a fairly rapid pace. If some other means are found, then perhaps the hryvnia will stabilize,” the economist argues.
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