The national Bank of Ukraine on the last working day of the week has raised the official dollar exchange rate to local currency on a record 28 per day, 5 per cent to 23, 13 hryvnia per dollar.
The Ukrainian regulator 5 February ceased conducting daily indicative of auctions in the foreign exchange market to select the equilibrium rate of the hryvnia. Also, the national Bank on February 6, tightened monetary policy by raising the discount rate to 19, 5% with 14% expecting to increase the attractiveness of the financial instruments in local currency.
Ukraine has already more than 1 year experiencing acute financial and economic crisis, largely caused by armed conflict in the Donbass. The economic results of the past year has broken All the record: according to the national Bank, inflation amounted to 24, 9%, and GDP lost 7, 5%.
A significant destabilizing factor for the economy was the instability of the hryvnia, the national currency has depreciated at an unprecedented rate. All attempts of the national Bank to stabilize the exchange rate proved to be ineffective, over one year, the hryvnia depreciated by half (from 8 UAH per dollar at the beginning of the year to 16, 6 UAH by the end).
The country flourished black market banks to buy foreign currency has become impossible, because of the credit organization believed the official rate low.
sections: Politics |