Azarov accuses banks of currency speculation, asks NBU to tackle problem

The reason for the destabilization of the situation on the currency market of Ukraine is speculation by banks, which hired experts and the media for this, Ukrainian Prime Minister Mykola Azarov has said.

"The rush and speculations were created by banks that have spare funds and can buy huge amounts of currency - they can hire so-called mercenary experts, media, and create a hysteria and a rush, thus, forcing ordinary people to buy dollars they don't need," the premier said in Donetsk on Friday, Sept. 7.

The head of the government asked the National Bank of Ukraine (NBU) to tackle the problem.

"There is a question – don't the government and the National Bank have enough instruments to punish those who mix up their personal interests with state interests? We have enough of them! That's why we are asking the National Bank to use them in the current situation," Azarov said.

He added that the government coordinates its policy with the NBU.

"These are two agencies that are responsible for stability in the country, in particular on the currency market," he said.

Azarov also said that during a working visit to Kharkiv he went to a bank and saw that it was selling U.S. dollars at the rate of Hr 8.11 per U.S. dollar.

"Yesterday [on September 6], at a meeting with [NBU Governor Serhiy] Arbuzov, I said that we should have enough currency for everyone, and even more… I'm absolutely sure that all banks and exchange points have currency," the premier said, and added that there is no reason to be worried.

"In 2003 our currency reserves were estimated at $4.5 billion, in 2004 – at around $8 billion, and now we have around $30 billion. So, if we managed to hold the exchange rate stable in 2003 and 2004, what may hinder us from saving it today with reserves that are several times higher? So, don't worry, everything is under control," Azarov said.