Ukrainian officials declare the need to devalue the hryvnia, but this will only lead to higher prices for all goods and services.
Economist Andrei Novak stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“If the devaluation of the hryvnia continues, there will be a chain reaction of rising prices for everything. For example, ¾ of our fuel is imported. If foreign currencies become more expensive, then it automatically becomes more expensive in the domestic market.
And if there is no reduction in the cost of credit resources, this will make the cost of our producers much higher in comparison with European ones. They take out loans at 3-5%, and our manufacturers are now at best 15%.
Our problem is that we do not have a comprehensive, systemic, strategic economic policy, joint - between the government and the NBU. The government does whatever it wants, the NBU does whatever it considers necessary.
Unfortunately, there is no uniform policy. That’s why we hear from the head of the NBU and ministers that a stable hryvnia is bad, it’s better when it constantly devalues. We’ve done this throughout history, and what economic state have we arrived at now?” the economist rhetorically sums up.