Recently, the U.S. senators suggested pegging the Ukrainian hryvnia to the U.S. dollar thus strengthening the country’s economy. The politicians believe that such a move will be a “life buoy” for Ukraine. This measure, also known as the currency board, implies that the rate of a currency, in this case - hryvnia, is fixed against the other currency, the U.S. dollar. Besides, the monetary base of the country must be funded by the currency reserves. Moreover, the country’s monetary base may be extended by larger foreign currency reserves. These measures help to curb rising inflation and protect the country’s economy from negative impact from outside. However, the proposal described in detail in a letter to the Treasury Secretary Jack Lew contradicts the agreement on the IMF financial aid. The IMF insists on introducing free and flexible rate of the hryvnia. Moreover, the National Bank of Ukraine says that the national currency cannot be linked to the U.S. dollar now as the country’s currency reserves are depleted - the small thing that Republicans Ted Cruz and Marco Rubio failed to consider. Not many people care about the real state of affairs in Ukraine. The politicians seek for any propaganda advantage to manipulate the situation. They also have an eye to the main chance to draw attention. Republicans actively criticize the actions or, to be precise, lack of actions from the side of the U.S. president in resolving the crisis in Ukraine. They accuse Barack Obama of being unable to sufficiently assist the new government in Kiev. The experts think that the next U.S. president will be from the Republican Party. Most of Republicans, including Marco Rubio call for tighter economic sanctions against Russia and full diplomatic break with Moscow.
