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Ukraine working on plans to stabilise currency: presidency

Ukrainian President Viktor Yushchenko Viktor Andriyovych Yushchenko (Ukrainian: Віктор Андрійович Ющенко   is working on plans to stabilise the plummeting national currency, the presidency announced Wednesday.

The Ukrainian hryvnia The hryvnia (sometimes hryvnya; Ukrainian: гривня; IPA: [ˈɦrɪvɲə]) has been the national currency of Ukraine since September 2, 1996.  fell sharply again Wednesday, reaching a new lows against the euro and the dollar, as the country's economic woes pile up.

The National Bank of Ukraine has allowed the hryvnia hryv·nia  
n.
See Table at currency.



[Ukrainian, probably from Russian grivnya, variant of grivna, pendant worn from the neck, obsolete unit of currency in medieval Russia, from
 to trade freely in line with the conditions of a 16.4-billion-dollar (12.8 billion euro) IMF IMF

See: International Monetary Fund


IMF

See International Monetary Fund (IMF).
 loan aimed at helping the country through the financial crisis.

It has endured the ignominy IGNOMINY. Public disgrace, infamy, reproach, dishonor. Ignominy is the opposite of esteem. Wolff, Sec. 145. See Infamy.  of suffering one of the worst devaluations during the meltdown, along with the Icelandic krona.

The dollar rose to 9.3-9.6 hryvnia at the end of trading from 8.36-8.53 hryvnia at the start, according to the website of Ukrainian financial group Inter Business Consulting.

In September, the dollar stood at 4.84 hryvnia.

The euro also strengthened to 13.07-13.5 hryvnia from 11.82-12.09 hryvnia in early trading.

Yushchenko is "worried by the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments.  of the hryvnia," said a statement issued by the presidency, quoting a senior official Roman Zhukovsky.

He is working on a plan aimed to "maintain a stable level" of the currency, said Zhukovsky, who denounced "major speculation" by some importers.

The president could impose restrictions on the use of foreign currency by exporters and reduce central bank refinancing funds available to commercial banks, which are suspected of using the money to speculate on the interbank lending market, the statement said.

The sudden fall in the currency has sent Ukrainians rushing to exchange booths to swap local money for hard currency in scenes that have recalled the hyperinflation Hyperinflation

Extremely rapid or out of control inflation.

Notes:
There is no precise numerical definition to hyperinflation. This is a situation where price increases are so out of control that the concept of inflation is meaningless.
 suffered by the country in the early 1990s.

Not only do Ukrainian consumers have to pay back loans taken out in more prosperous times but many will also have to pay them back in dollars.
Copyright 2008 AFP Global Edition
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Author:AFP
Publication:AFP Global Edition
Date:Dec 17, 2008
Words:293
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