Weakening of hryvnia to continue in near future - poll
The weakening of the hryvnia in the near future will continue on the background of aggravating clashes of protesters and law enforcement officers, according to experts polled by Interfax-Ukraine.
Thus, according to the head of the analytical department of Investment Capital Ukraine, Oleksandr Valchishen, the hryvnia exchange rate might sag in the coming days to UAH 9.00-9.25 per $1. "The intensification of the political crisis together with bad macroeconomic statistics worsens the already low level of the government's solvency and as a result reduces the ability of economic agents (the government, companies and banks) to attract strong foreign currency to the country," said the analyst. Board Chairman of Bank Khreschatyk Dmytro Hrydzhuk believes that there won't be a deep devaluation of the hryvnia. "I think that the hryvnia exchange rate volatility will remain, but there won't be sharp devaluation, as recently the market has adapted to the fierce political struggle in the country," said the banker. According to him, Ukraine's planned raising of the second tranche of financial aid from Russia of $2 billion, the EU's negotiations with international financial institutions on the possibility of providing Ukraine with financial support, as well as the fact that Ukraine has implemented the scheduled payments on the foreign debt will have a stabilizing effect on the hryvnia exchange rate.