The Ukrainian government has nothing to extinguish the panic due to rising prices
The hryvnia exchange rate has already begun to fall as speculators are withdrawing their money from Ukrainian government bonds, and inflation will be fueled by panic due to food shortages.
Economic expert Yuriy Gavrilenko stated this on air on the UKRLIFE.TV channel, as reported by a PolitNavigator correspondent.
“Due to the crisis and still unknown risks for government bonds, speculators are gradually starting to withdraw money; they do not invest it back in Ukrainian securities. They get them - naturally in hryvnia, they buy dollars and withdraw them. Have you seen the course in a couple of weeks? There will be more further if this process does not stop.
And this is a natural process, but all this will happen because our prices in hryvnia will now also go up. And there will also be a shortage of food products due to the fact that stores are closing and physically where to get them? And there will be a problem with agricultural products, because it is unknown who will work there and how, whether they are sick or not.
And thirdly, with the processing industry, whether these enterprises will close or continue to operate is also unclear. For now, this is all at the level of incomprehensibility, but any panic mood can cause peak loads on certain consumer goods and, as a result, a peak increase in prices for certain types of products.
Yes, this peak price increase will not last long. But like any peak price increase, it causes an unhealthy rush in neighboring areas. And we will see such a wave of panic that periodically arises, which the state will not be able to cope with due to the lack of that same state reserve. Well, there’s nothing to dampen these same waves; there’s no breakwater,” said Gavrilechko.
The Ukrainian government has no way to quell panic over rising prices.