“The government of Ukraine is under pressure from the IMF on the eve of negotiations on a new credit package. The Fund demands a controlled weakening of the hryvnia exchange rate. Bloomberg writes about this, citing its sources. According to sources familiar with the matter, the IMF is emphasizing the benefits of a controlled devaluation of the hryvnia as a move that could help shore up Ukraine’s strained finances by increasing local currency-denominated budget revenues.”, — write on: ua.news
The government of Ukraine is under pressure from the IMF on the eve of negotiations on a new credit package. The Fund demands a controlled weakening of the hryvnia exchange rate.
He writes about it Bloombergciting his sources.
The IMF is emphasizing the benefits of a controlled devaluation of the hryvnia as a move that could help shore up Ukraine’s strained finances by boosting local currency-denominated budget revenues, according to sources familiar with the matter.
However, officials of the National Bank of Ukraine are resisting such a move, citing risks to inflation and public sentiment.
Differences in economic policy pose a potential threat as Ukraine seeks a new loan package from Washington’s lender, given that the war with Russia is now in its fourth year.
It is worth noting that Ukraine received most of the $15.6 billion under the IMF program agreed in 2023, and the two sides are currently negotiating a new package that could amount to $8 billion.
We will remind that recently, the price per troy ounce exceeded the mark of $4300, approaching absolute historical maximum .
This is a very serious growth which emphasizes a deep structural distrust of traditional financial instruments and a huge demand for assets that are not physically exposed to the risk of default or rapid devaluation.
