Voices from Russia

Wednesday, 25 February 2015

Junta Imposes Rationing… “Baloney Dollar” Grivnya Induces Rush on the Shops

00 Vladimir Nenashev. The Queue. 2000s

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On Wednesday, UNN reported that Ukrainian shops imposed rationing of basic products after the drastic fall in the value of the grivnya. The currency lost 70 percent of its value, causing people to stockpile food and buy electronics as a hedge. Restrictions apply to cooking oil, flour, and sugar. Retailers may sell no more than two bottles of sunflower oil and two packs of buckwheat per customer, and, depending on the store, from 3 to 5 kilogrammes (6.6-11 pounds) of flour and sugar. Bread, rice, potatoes, meat, and milk aren’t yet rationed, but aren’t so plentiful on the shelves. Stores also saw higher demand for household appliances, as people consider consumer electronics an investment as prices increase daily. Experts think that Ukrainian inflation could be 27 percent by the end of 2015.

Grivnya’s Fall

The dramatic depreciation of the grivnya triggered the rush to buy; it lost 70 percent of its value against other currencies in just a year. The conflict in Novorossiya and international reserves only enough to last for two months are key reasons for the currency’s downward spiral. The devaluation accelerated after the National Bank of the Ukraine (NBU) let the grivnya float in early February. Currently, the Ukraine is in a deep political crisis reflected in its economy and budget. The country is balancing on the brink of default. “Prime Minister” A P Yatsenyuk says that the Ukraine’s task for 2015 is “to survive” and that all people would face tough challenges no matter what their place in society. According to the NBU, the country’s GDP plunged by 7.5 percent in 2014.

The minimum weekly wage in Ukraine is 1,218 Grivnya (2,675 Roubles. 272 Renminbi. 2,700 INR. 43.50 USD. 54 CAD. 55.20 AUD. 38.30 Euros. 28 UK Pounds), which is 93 percent of the wage in Bangladesh, Ghana, and Zambia at 46.60 USD (2,870 Roubles. 292 Renminbi. 2,900 INR. 58 CAD. 59 AUD. 41 Euros. 30 UK Pounds. 1,305 Grivnya). The official exchange rate set by the NBU for 24 February is 28.29 Grivnya/USD and 31.96/Euro. Exchange offices sell the USD at more than 40 Grivnya and the Euro at about 50. In an attempt to stop the currency’s free fall, the NBU stepped up its currency controls Wednesday, preventing banks from buying any foreign currency for clients this week and limiting what they could buy for themselves.

At Wednesday’s Cabinet meeting, Yatsenyuk criticised the decision, saying that didn’t stabilise the Ukrainian economy, “This morning I learned that the NBU on its own, without consultation, decided to close the interbank market, which surely doesn’t add stability to the grivnya”. Meanwhile, Ukrainian media reported that junta strongman P A Poroshenko called for the head of the NBU V А Gontareva to “stop messing with the exchange rate” and gave her a week to solve the issue.

25 February 2015

RT

http://rt.com/business/235375-ukraine-hryvnia-currency-crisis/

Editor:

Of course, Yatsenyuk doesn’t want restrictions on forex transactions. The corrupt bastard is turning his assets into USD and Euro in preparation for his flight abroad when the junta falls apart. Slava Ukraina! The Ukraine ain’t dead yet, but he’s getting ready for when it is. There’s rationing in Kiev and none in Moscow… the asshat bloviators at Stratfor conclude that Russia’s falling apart! They’re nothing but politically correct (in a rightwing sort of way) water-carriers for Know Nothing trash like Ted Cruz and Marco Rubio, dontcha know. If Moscow’s going down, I’ll check into Bedlam with Mr Scrooge…

The Ukrainian SSR was the jewel-in-the-crown of the USSR… today, it’s on a level lower than Dogpatch or East Bumfuck. Let’s see… haven’t the Uniates been given free rein over the last 24 years? What does that tell you about “Galician Consciousness?” I know what it tells me…

BMD

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