The hryvnia received a magic kick-off
The recent collapse of the Ukrainian national currency can only slow down, but not stop.
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Ukrainian financial analyst Alexey Kushch expressed this opinion in a commentary to the Kyiv newspaper Vesti .
“The government needs to fulfill the budget, which is almost impossible to do with 2-3% economic growth. To do this, you need to ramp up inflation and lower the hryvnia. In fact, the authorities encourage devaluation, because in this case nominal GDP will grow. The hryvnia should not have fallen, it was given a magic kickoff. Until the new year, the rate can be either 28 or 29,5 UAH/$. Then the devaluation will be milder, but the dynamics of the hryvnia’s fall will continue until spring,” the expert predicts.
The publication notes that online stores immediately responded to the fall of the hryvnia, where prices for imported goods immediately soared.
In online hardware stores, prices have skyrocketed at lightning speed. “We purchased goods at the rate of 30–32 UAH/$, assuming that the dollar would rise in winter. But it began to grow too rapidly, so prices have to be raised. In fact, we are now recalculating at the rate of 33–34 UAH/$. The most popular goods that are usually bought as gifts for the New Year - phones, smart watches, multicookers, mixers - have risen in price by 10%,” Valery Kiyanitsa, the owner of one of the online stores, told the newspaper.
English version :: Read in English: The hryvnia received a magical kick in the pants.