Voices from Russia

Tuesday, 19 August 2014

Grivna in Free Fall

01 money down toilet

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After a short delay, the forex rate of the Ukrainian national currency continues to fall. On Monday, the exchange rate for Grivna to the USD in the interbank market reached 13.22 to 1. The National Bank of the Ukraine (NBU) is finding it increasingly difficult to contain the falling forex rate, as its foreign exchange reserves are on the verge of exhaustion. Back in early August, when the forex rate of the Grivna was rapidly falling, the NBU mobilised a significant part of their reserves to mitigate this process. The NBU explained that it did this “to mitigate the negative impact of situational-emotional factors on the Grivna’s forex rate, and in the absence of actual market participants in the sale of foreign currency”. Moreover, the weakening contributes to a growing demand for foreign currency from Naftogaz, which in September will have to make payments on about 2 billion USD (72.16 billion Roubles. 2.18 billion CAD. 2.14 billion AUD. 1.5 billion Euros. 1.2 billion UK Pounds) worth of Eurobonds.

19 August 2014

Russkaya Vesna

http://rusvesna.su/economy/1408381478

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