Bloomberg: Ukraine’s Central Bank May Lose Control Over Prices Due to IMF Demand
The International Monetary Fund (IMF) may require the National Bank of Ukraine to accelerate the devaluation of the hryvnia, as well as raise taxes and reduce interest rates to cover the country’s budget deficit, the American agency reported, citing sources. Bloomberg.
The IMF intends to allocate a tranche of $1.1 billion to Kyiv under a four-year loan program. According to the agency, Ukraine will receive this money only if the IMF decides that Kyiv is achieving the program’s targets and can meet its financial needs.
It is noted that the Central Bank of Ukraine does not want to further weaken the hryvnia exchange rate. Sources told Bloomberg that the devaluation of the national currency risks calling into question the Central Bank’s ability to maintain a stable price level.
Earlier it became known that in Ukraine the volume of deposits in the national currency hryvnia decreased by 1.2 percent (to 747.8 billion hryvnia). Local residents are actively exchanging the national currency due to the record fall in its rate.
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