arabtoday
Last Updated : GMT 22:09:15
Arab Today, arab today
Arab Today, arab today

Ukraine currency hits record low against dollar

Arab Today, arab today

Arab Today, arab today Ukraine currency hits record low against dollar

A man walks past a foreign currency exchange office
Kiev - AFP

Ukraine's national currency fell Tuesday to a record low against the dollar, the central bank said, as fierce fighting in the east provoked "panic" among the population.
The National Bank of Ukraine said that the average exchange rate it calculates based on interbank transactions had dropped to 13.14 per dollar. The hryvnia also plunged to 17.58 per euro.
Central bank governor Valeriya Gontereva told an emergency session of parliament "there is no economic factor that would justify" the hryvnia's sudden drop in value.
She spoke of "a sense of panic among the population and business leaders" and added that central bank sales of almost $150 million had failed to stem the tide.
Gontereva had sharp words for "provocative declarations by different political parties with respect to the strong probability of a large-scale war with Russia."
Ukraine has spent four months battling pro-Russian separatists in eastern regions following Moscow's annexation of the Crimean peninsula.
On Monday the central bank said it did not plan to drop its floating exchange rate policy even though it has intervened three times in recent days to try and halt the currency's fall.
But it did warn that "if there was a substantial increase in foreign exchange market turbulence, the National Bank would be forced to impose administrative restrictions, along with market-based measures."
Gontareva said that emergency measures might have been taken last week but were not because the bank wanted to first get approval for any action from the International Monetary Fund.
The IMF is due to release $1.5 billion in financial aid for Ukraine on August 29 as part of a total package worth $17 billion.
That is the lion's share of a total international rescue plan worth $27 billion granted to Kiev in April in exchange for strict economic reforms.  
The central bank noted on Monday an improved balance of payments and emphasised that there were "no macroeconomic grounds" for the sharp currency fluctuations.
One economist agreed that there were no fundamental reasons for the currency's slump, pointing rather to a short-term impact from the fighting and fears of a possible Russian invasion.
"This was caused by the population reacting to the negative stream of news and looking to save money in foreign currencies," Olena Bilan, chief economist at investment firm Dragon Capital, told AFP.
Ukraine's economy is in dire straits however, with business activity contracting by 2.3 percent in the second quarter of 2014 from the first three months of the year.
That period was already marked by a 2.0 percent drop from the last quarter of 2013, and Ukraine has essentially now been in recession for more than two years.
In July, the central bank hiked its key lending rate to a record 12.5 percent to battle inflation, but the move is likely to crimp economic activity further.
President Petro Porochenko said in late July that the fight against pro-Russian separatists was costing around 70 million hryvnias ($5.3 million, 4.0 million euros) per day.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ukraine currency hits record low against dollar Arab Today, arab today ukraine currency hits record low against dollar

 



Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today At Milaidhoo Island, Maldives

GMT 08:42 2016 Wednesday ,07 December

At Milaidhoo Island, Maldives
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today As West watches Aleppo slip away

GMT 08:15 2016 Saturday ,10 December

As West watches Aleppo slip away
Arab Today, arab today 'Rookie' Trump must fall into line

GMT 08:02 2016 Tuesday ,06 December

'Rookie' Trump must fall into line

GMT 22:22 2016 Thursday ,08 December

Muscat Stock Index Gains 11.23 Points

GMT 22:18 2016 Thursday ,08 December

Bahrain Stock Index Gains 10.48 Points

GMT 19:08 2016 Thursday ,08 December

United States Stocks Higher at Close of Trade

GMT 12:18 2016 Thursday ,08 December

Singapore stocks end down 0.03 pct

GMT 09:58 2016 Thursday ,08 December

Asia markets build on global rally with ECB in focus

GMT 23:19 2016 Wednesday ,07 December

US Stocks End High on Tuesday

GMT 21:42 2016 Wednesday ,07 December

Chinese Yuan Weakens to 6.8808 against USD Wednesday

GMT 18:07 2016 Wednesday ,07 December

Tadawul closes at 1-year high to a fresh one-year
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today The summer school raising aspirations

GMT 12:49 2016 Tuesday ,06 December

The summer school raising aspirations
Arab Today, arab today Ryan Gosling, Emma Stone immortalized

GMT 12:31 2016 Thursday ,08 December

Ryan Gosling, Emma Stone immortalized
Arab Today, arab today Australia's Rinehart, China group

GMT 10:02 2016 Friday ,09 December

Australia's Rinehart, China group
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today Kirk Douglas at 100, still in love

GMT 12:19 2016 Thursday ,08 December

Kirk Douglas at 100, still in love
Arab Today, arab today Swiss unveil stratospheric solar plane

GMT 13:47 2016 Thursday ,08 December

Swiss unveil stratospheric solar plane

GMT 10:48 2016 Tuesday ,06 December

France bets on Bollywood

GMT 10:52 2016 Tuesday ,06 December

Vanessa Redgrave makes directing

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 11:39 2016 Tuesday ,06 December

Indonesia expands protection

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 13:17 2016 Friday ,25 November

Ajman Tourism launches time capsule

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:08 2016 Saturday ,10 December

Samsung Galaxy A8 arrives in Saudi market

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday