If the rate is not kept at 16, it will be 19-20 hryvnias per dollar - expert

12 November 2014 12:40  4984426 085350
If the rate is not kept at 16, it will be 19-20 hryvnias per dollar - expert

If the rate this week is not kept at 16, then the next target may well be 19-20 UAH per dollar.

This was written by a partner of the investment company Capital Times Eric Naiman in his blog.

"The National Bank only observes the events and "threatens", although it was announced that there was an agreement with banks to keep the exchange rate within 15-16 UAH per dollar. Today and tomorrow will see if they manage to keep the rate 16", - he said.

According to him, devaluation panic has prompted growth of demand again, and buyers took a wait.

"If the rate this week is not kept at 16, then next target may well be 19-20 UAH per dollar," - he adds.

The experts points out that what is happening in the currency market affects the business of importers, which can not counteract the devaluation with higher prices - because in reality incomes of citizens do not grow at the devaluation rate.

"This also affects business and people who have foreign currency loans. And what is NBU doing? Looking for a new balance exchange rate under its connivance? But psychology (panic of buyers and waiting strategy of sellers) can take the rate very far from the real economic balance" - Naiman says.

"And then the NBU will have to find excuses for the people who will buy very expensive foreign currency, after it has become cheaper by 10-20% - so it was always and everywhere" - he concluded.

Ekonomicheskaya Pravda

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