Online:
Visits:
Stories:
Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Ukraine force to Float Currency Because of Run on the Hryvnia

Friday, February 7, 2014 22:46
% of readers think this story is Fact. Add your two cents.

(Before It's News)

from Armstrong Economics:

The fear of rising war in Ukraine has sent people scrambling to buy dollars. The government has now placed restrictions on buying dollars. Ukraine’s currency reserves have fallen so dramatically that the national currency, the hryvnia, is now hanging in mid-air. The National Bank of Ukraine has been forced to back off of the fixed exchange rate for they over-valued the currency and they would have been wiped out of all reserves trying to pretend there is nothing wrong.

Thus, on Feb. 7 the Central Bank introduced a new exchange rate for the hryvnia at 8.708 to the dollar in what appears to be an attempt to meet the lending requirements of the International Monetary Fund. The currency will now float and that will result in a further decline against the dollar. This geopolitical crisis is reflected in the currency and is what I have been trying to explain – it is always a matter of CONFIDENCE. This crisis is also having a negative impact upon Russian banks that went into Ukraine for business before the Lehman Brothers crisis of 2008.

Read More @ ArmstrongEconomics.org

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.