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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

WILL THE FALLING RUBLE HIT UKRAINE?

13 November, 2012 - 00:00

Friday morning NBU again raised its rates: the pawnbroker rate from 50 to 56% and discount rae from 45 to 51%.

NBU Governor Viktor Yushchenko postponed his trip to Hungary and declared at a May 28 NBU briefing that the rates were increased for “psychological reasons” to be on the safe side.

Mr. Yushchenko considers that today’s financial market situation with the refinancing rate going up from 50 to 150% has little to do with what is going on in Ukraine. That same day the Cabinet and NBU issued a joint statement to the effect that Ukraine’s financial situation “remains complicated,” but all will be well, because, using the President’s pet phrase, everything is under control. The main thing now is to prevent a panic, stresses Mr. Yushchenko, especially considering that the IMF commission is to pay another visit June 10.

A very interesting detail: a week ago, the number one banker, when asked to comment on the possibility of his resignation (word has been spreading about his intent to do so), replied, “I am not denying anything.”

The Russian Central Bank’s second refinancing rate increase this May was received on the financial market like a terrorist bomb that had just gone off.

AP Photo:

Russia's inflationary ladder. And ours?

 

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