Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Monday, October 27, 2008

Hryvnia Falls To Record Low On Monday

Ukraine's hryvnia fell to near a record low against the dollar this morning as the $16.5 billion International Monetary Fund loan failed to restore confidence in the country's ability to weather the global financial crisis. The hryvnia slid 1.3 percent to 5.9500 per dollar by 9:48 a.m. in Kiev, from 5.8750 on Oct. 24. It traded as low as 6.0812 last week, according to Bloomberg this is the hryvnia's weakest level since at least 1994, when they began tracking Ukraine's currency.

The IMF said yesterday the loan is conditional on Ukraine balancing its budget, reining in social spending and narrowing its current-account deficit, which was $7.7 billion in the first seven months of the year. The hryvnia lost 12 percent versus the dollar last week, its biggest weekly drop on record, as investors sold emerging- market assets from Brazil to Korea on concern emerging-market countries will have difficulty servicing their foreign debt.

No comments: