The Ukrainian economy is not at the best of times as geopolitical tensions affect the country deeply. As a result, the national currency keeps on plummeting, thus renewing historical lows against the greenback. According to Ukraine’s central bank, the dollar/hryvnia pair posted record 13.139 hryvnias. The previous low of 12.977 was fixed on April 14, 2014.
National Bank of Ukraine Governor Valeriya Hontareva stated that the unrest in Eastern Ukraine reflected on the hryvnia exchange rate. The NBU’s chief pointed out that there are no more reasons for the national currency value moves as the political background for Ukraine has improved. So, the situation is going to change soon. The regulator proposed the foreign exchange intervention as a tool to curb the fluctuations of the hryvnia’s exchange rate on the market.
To date, despite the economic and political troubles, Ukraine still suits the IMF requirements, Christine Lagarde said. The chief of the International Monetary Fund announced that further aid should be provided only after Ukraine could guarantee that it will be able to exist in future without the funds allocated by the organization. An important point to remember is that the IMF approved a two-year $17.1 billion loan in late April. The bailout is supposed to be split into several tranches. Ukraine got the first aid package in May.
