The hryvnia will depreciate by at least another 2015% in 22, – Reuters
London – Kyiv, January 15 (PolitNavigator, Vasyl Ablyazimov) – Ukraine faces a bleak economic outlook, Reuters acknowledges today . The hryvnia will depreciate by at least another 22% within the year.
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The agency reports that the collapse of Ukraine's foreign exchange reserves to a level at which reserves are not enough to cover five weeks of imports threatens major government problems and financial collapse.
That is, unless international lenders strengthen existing lending offers (estimated at up to $15 billion), the country will have a funding gap.
“The urgent task is to stabilize the currency and the economy, and then decide how to repurpose or restructure the debt,” said Vadim Khramov, an analyst at America Merrill Lynch.
Ukrainian bonds are currently trading at around 55 cents on the dollar, a rough idea of what investors expect from every dollar invested in the country's economy. Analysts express the opinion that Ukraine will not avoid default in the coming months with a probability of no less than 63%.
Also, Goldman Sachs analysts expect the devaluation of the hryvnia in 2015 by no less than 22%, which means setting an exchange rate of no less than 20 UAH per dollar.
The hryvnia will depreciate by at least another 22% in 2015, according to Reuters.