The hryvnia exchange rate could continue dropping until the country receives loans from international financial institutions, bankers polled by Interfax-Ukraine consider.
{"html":"undefined"}“The decline of the hryvnia exchange rate will continue until the
country receives international loans. The main factors affecting the
currency exchange rate dynamics are a sharp reduction in foreign
exchange flows into the country, the withdrawal of foreign capital from
it, the growth of distrust in the banking system due to a number of
restrictions on the disposal of funds in foreign currency, the
increasing political tension, the adoption of unpopular tax innovations
and the announced increase in utility tariffs,” said the first deputy
chairman of Prominvestbank, Viacheslav Yutkin.
The board chairman of a middle bank with domestic capital, who wished
to remain anonymous, believes that in the period until the country
receives funds from international financial organizations, the hryvnia
exchange rate might fall to Hr 14-15 per $1.
“Until the country receives money from international financial
institutions, the hryvnia exchange rate will continue to decline on the
background of the public’s panic sentiment. The hryvnia rate might fall
to Hr 14-15 per $1, which will lead to losses of banks, the banks’
violating regulations,” said the banker.
The head of the supervisory council of a small bank with Ukrainian
capital, who also wished to remain anonymous, believes that the hryvnia
might continue to decline after reaching the level of Hr 15 per $1.
“The rate of Hr 15 per $1 is not the limit for the hryvnia
devaluation in the period until the country gets funds from
international financial organizations. Foreign creditors will give
Ukraine only as much funds as to avoid default in the country,” he said.
