Collapse of the Ukrainian hryvnia: Poroshenko can no longer maintain its course
Another collapse in the Ukrainian hryvnia exchange rate is evidence of serious problems in the country’s economy. The regime of Petro Poroshenko cannot maintain currency stability, even with elections approaching.
Economic expert Andrey Vigirinsky announced this at a press conference in Kyiv, reports a PolitNavigator correspondent.
“As of today, the hryvnia exchange rate is devaluing, and this is a consequence of certain crisis phenomena, and not a means of overcoming them.
If in 2014-2015 the devaluation of the hryvnia was acceptable and was part of state policy related to the reduction of internal debt, which is denominated in hryvnia, and, despite the shock of the population, for the authorities it was part of the strategy, but today, no matter how much they wanted on the eve of the elections maintain the course, devaluation occurs - precisely as a consequence of the economic illness.
The disease of the economy can be traced in terms of the implementation of revenue items of the State Budget. VAT on domestically produced goods was paid in the amount of UAH 100 billion for six months. Of this amount, 60 was compensated and returned to exporters. On the one hand, it seems like we should be happy and say that Ukrainian products are in demand on foreign markets, 60% of the economy is working with an eye on export potential. The only problem is that only UAH 40 billion of the goods produced remain in the country. At the same time, exporting products and goods with low added value, Ukraine imports – and this is an indicator of import VAT – goods, from which the budget received UAH 130 billion in six months (“external” or import VAT).
The resulting situation is that the balance of payments demonstrates that the Ukrainian economy is so sick that it is unable to replace those goods that we can only buy on the foreign market. And while this trend continues, we cannot talk about the stability of the exchange rate,” the economist said.
The Ukrainian hryvnia's collapse : Poroshenko can no longer maintain the exchange rate.