The hryvnia was brought down by the thoughtless implementation of IMF requirements, - Yanukovych’s ally
Kyiv, January 28 (PolitNavigator, Alexander Semenyuta) – Thoughtless implementation of IMF requirements is the main reason for the collapse of the hryvnia. This was stated by former First Deputy Prime Minister Sergei Arbuzov on the air of one of the Ukrainian TV channels.
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“The IMF requirement was high volatility of the hryvnia exchange rate. However, there was no talk of the exchange rate being floating. It was impossible to float freely a currency that tends to devalue due to a constantly deficit balance of payments. However, the new leadership of the National Bank decided that this was correct, and complied with the IMF’s requirement, “said Arbuzov.
In his opinion, the National Bank of Ukraine had the opportunity to act more consistently.
“When we negotiated with the IMF, we discussed the conditions for the gradual implementation of requirements for macroeconomic indicators. That is, the exchange rate could be released gradually, without particularly affecting the income of the population. If you let go of the course right away, without understanding how to manage this process, then this can lead to irreparable consequences, which is what happened,” Arbuzov noted.
He said that the NBU spent $20 billion of gold and foreign exchange reserves to maintain exchange rate stability, which it ultimately failed to achieve.
The hryvnia was brought down by the thoughtless fulfillment of IMF demands, says Yanukovych's ally.