Ukraine’s Top Banker Urges Optimism

Despite the sharp drop of the hryvnia cash exchange rate (averaging UAH 4.82 to the dollar in Kyiv on October 28) and slow but sure decline on the Interbank Monetary Market (down 1% since the start of the week, from UAH 4.49-4.50 to 4.53-4.55) NBU Governor Viktor Yushchenko is still his usual optimistic self. According to Ukrayinski Novyny, Mr. Yushchenko believes that the sharp dollar rise is explained by “destructive” statements made by a number of politicians predicting an inevitable hryvnia slide, which allegations are upheld by a number of speculation-minded banks and companies. “The hryvnia rate must not drop but go up. How this will happen from one day to the next will depend on the effectiveness of political and economic stability propaganda over the next couple of weeks,” he said.

“No monetary events have taken place on the cash and noncash hryvnia markets to discredit the national currency rate and cause its further devaluation,” Mr. Yushchenko stressed. He went on to state that the NBU has addressed influential people in the upper echelons of government, requesting their comments to improve market attitudes and strengthen the people’s confidence in the hryvnia.

In general, in addition to the traditional absence of “monetary” causes for alarm, we now have a thirst for optimism. It remains to find someone above who would inspire optimism in the people and hryvnia.