Voices from Russia

Thursday, 5 February 2015

BREAKING NEWS… Grivna in the Shitter after Central Bank said it Could No Longer Support Currency

00 ukrainian money 01. 05.02.15

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The Grivna lost 34 percent against the USD after the head of the central bank signalled it could no longer support the currency with regular interventions and would allow greater fluctuations. On Thursday, National Bank of the Ukraine (NBU) Governor V А Gontareva told reporters in Kiev, “Get used to market volatility”. According to a statement published Thursday, the NBU “is changing its approach to monetary policy, while strengthening its rigidity”, as foreign exchange reserves are only 7.5 billion USD (501 billion Roubles. 46.8 billion Renminbi. 465 billion INR. 9.3 billion CAD. 9.6 billion AUD. 6.6 billion Euros. 4.98 billion UK Pounds). After the policy shift announcement, the Grivna fell to 24.5/USD and 28.092/Euro. The bank also announced an interest rate hike to 19.5 percent from 14 percent, in a move to mend the worsening economic situation. Foreign exchange reserves are at a ten-year low of 7.5 billion USD, down more than 60 percent since last year. In December, reserves stood at about 10 billion USD (668 billion Roubles. 62.4 billion Renminbi. 620 billion INR. 12.4 billion CAD. 12.8 billion AUD. 8.8 billion Euros. 6.64 billion UK Pounds). Simon Quijano Evans head of emerging markets research at Commerzbank in London, told Reuters “It’s more about economic failings and the war situation at this stage. Interest rates won’t make any difference, just as they aren’t in Russia”. The NBU decided to scrap the indicative exchange rate on Monday.

5 February 2015

RT

http://rt.com/business/229607-ukraine-hryvnia-free-fall/

Editor:

The oligarchs are plundering the foreign exchange reserves before the whole enterprise falls into the shitter. Note that this happened just as Kerry stepped into Kiev. The guy has the Reverse Midas Touch! Everything that he touches turns to shit! The Ukraine ain’t dead yet… but it soon shall be, and everybody knows it… especially, Kolomoisky and Clan Balogh. If you wonder where the money went… start lookin’ there… you might get an education. How much of it did Klichko sock away in Germany? He’s got a German passport, dontcha know…

Just you watch… after the whole ramshackle affair falls, the Galician Uniates and schismatic Orthodox will claim that it collapsed because “it wasn’t Ukrainian enough”… I shit you not. They’ll blame the Jews, the Magyars, the Poles, and (of course) the Russians. In their minds, they’ve NEVER committed any mistakes… no, siree… I’ve seen ’em up close and personal, and I’d say that I’m not the only one to think like that.

BMD

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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