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Ukraine Currency Crashes To Record Low As IMF Blasts "Gross Abuses"
Despite celebrations of de-escalations and truce in US equity markets (by asset-gathering commission-takers), the situation continues to go from bad to worse in the nation almost forgotten now that ISIS is stealing American headlines. The Hryvnia plunged 7.5% this morning - its biggest single-day drop on record - following the release of a scathing IMF letter and devaluation warnings from BofA. The IMF blasted Ukraine's "premature emission of extra money," and demanded it "immediately halt these gross abuses," as BofA warns of risk of "10-20% devaluation" in the next year is high given reserves are at a "critical level."
UAH plunges 7.5% to record lows this morning...
As far as the truce is concerned, we leave it to Bloomberg's Richard Breslow to explain the idiocy...
For a truce that people keep celebrating -- the 11th day -- there seem to be a lot of people still dying, troops moving around, still questions about more sanctions, ultimate effects on Russia eco, the local markets look quite ill.
Russia itself has put out dire f/casts, growth down 3%-4% and recession;
RUB made yet another all-time low, seems to have quieted, Micex is up, hryvnia getting pole-axed
Additionally Luhansk Rebels Would Like to Switch to Ruble, RIA Says
Self-proclaimed Luhansk People’s Republic hopes it won’t have to use Ukraine’s hryvnia much longer, RIA Novosti reports, citing republic’s leader Igor Plotnitskiy.
Plotnitskiy says political issues complicate matter, though he doesn’t expect hryvnia to be used for much longer: RIA
Luhansk still must resolve many economic, financial issues, including development of banking system: RIA
And then there is the IMF! (Source: e-news)
Which likely confirms BofA's warning of the potential for a Hyrvnia devaluation...
Central bank may have to further deplete FX reserves, now near “critical level” of $15b, Bank of America Merrill Lynch economist Vadim Khramov says in report
Natural gas purchases for winter to widen current-account deficit: Khramov
“We see risks of 10%-20% hryvnia devaluation from the current level within a year": Khramov
* * *
But apart from that, everything is under control in Ukraine. Given the extent to which the UAH is falling and the strong language from the IMF, one could be mistaken for thinking the USA is pushing for another leader to be put in place once again...
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NO IT'S NOT IT'S JUST RUSSIA BECAUSE I HATE RUSSIA
/sarc
<---Won't make Drudge headline
<---Will make Drudge headline
I don't get it.
Why not print Hyrvnia and buy some of those sweet Puerto Rican Power Bonds?
I'm thinking of doing it.
We used to want to lock in rates. Soon it will be to lock in values. At 20% devaluation does it matter what the IMF charges in interest? Wait till it gets to 80% devaluation - I wonder if that will mean more than a letter?
and i thought bringing in the 173rd airborne brigade in from italy to western Ukraine would stabilize the situation...
now, not so much...
That's a lot of DOLARES rolling in big feller!
Better let those boyz loose on the countryside! Oh, wait...
Speaking of premature emissions, is anyone else seeing the Russian dating site ad?
"At 20% devaluation does it matter what the IMF charges in interest? "
IMF isn't loaning those oligarchs Hryvnia, they are making them a loan in US Dollars.
Yatsenyuk-nyuk-nyuk and the Choco King have seized the Ukrainian CB and are printing with total abandon.
God knows what they are actually doing with the cash. -As likely swapping it for any other currency/gold and whisking it offshore to privately owned shells in Dubai or Switzerland.
The faster they print the more the US Dollars are implicitly worth on the ground, hence why they want whatever was promised as fast as possible and moar! if they can possibly get it.
To the locals in the East the Ruble actually looks GOOD. -They want OUT of Ukraine and it's rapidly decaying fiat.
Pretty damned funny seeing what appears to be a personal rebuke from Christine Lagarbage.
She basically politely told the third stooge to shut up the hell up and do as he is fucking told -OR ELSE.
WB7 should have a wonderful time portraying this mess as a stooges/dowager pie fight since it resembles one so much without his attention already....
.
Why in the world are you thinking of printing Gryvnia?
Might as well set up an industrial stamping machine and make counterfeit aluminum 10-Zloty coins.
lol
Makes perfect sense (if your currently smoking a crack bong and listening to Barry Manilow, while masturbating to ISIS beheading porn)!!
Otherwise thats fucking crazy:)
Apparently the manipulators forgot about the "Boomerang Effect"
Jesus, look what that evil fucking putin has done.
Fuck you nuland, obama, neocons, mcshitstain, princess graham. Fuck every one of you
All of the Ukraine should switch to the Rubble (sic). The hyvrnia, hryvnia, uh, hernia, is unpronounceable.
This mnemonic will help with the currency spelling:
With the onset of Zimbabwe-ish hyperinflation, many Ukrainians will be downsizing living quarters to trailer homes or RVs soon. (Ukrainian RV = shipping container).
Instead of "Hello, suburbia!" think of a Ukrainian refugee family holding all their belongings in garbage bags and cresting a hill to reveal the promised land: "Hy, RV-nia".
Putin grossly underestimated Obama. The U.S. can continue to wage economic war against Russia as long as there are still any sacrificial Ukrainians left alive. After that? Well, the Poles are probably next.
God forbid that they "emit" money. We in the west are all so solvent and would never do that since it would (should) cause hyperinflation
How come EU is so anxious to take this bankrupped country into it´s cmmunity.... it will only cost taxmoney and big transfers...it will take them 20 years to be a benefit (positive revenue) to EU... so WHY.....humanitarian, could be, agaisnt russia, more possible... but still WHY you dumb idiot EU cleptocrats...
Ukraine is a fun 'football'. If the West loses, well, nobody ever really gave a crap about Ukraine anyway. It's only been a part of the Russian Empire for what? A thousand years?
And if they 'win'? Well fuck, let's get drunk & screw!
You are 100% right
The US doesn't care if the Ukraine sinks or swims. The worst case scenario is a failed state swarming with roaming gangs of Nazi death squads, a festering carbuncle oozing into Russia and the rest of Europe. We can even call it Euraq.
It fucks Russia and it fucks Europe, so for Vichy DC it is another Mission Accomplished.
'Euraq' or 'Ukraq'
lol, I love the sound of that.
and as Ukraine descends deeper into farce and failure, expect the economic downturn will encurage a greater supply of Ukrainian brides or 'working girls' to come onto the world market in a few years, a win for all gentlemen of the world!
"How come EU is so anxious to take this bankrupped country into it´s cmmunity.... it will only cost taxmoney and big transfers"
Because there are untapped debt slaves there and if it blows up you answered your own question in that the tax payer is on the hook either way, or as they say in Rikers Island, "blood on my knife or shit on my dick, whats it gonna be boy"
The IMF should stick with taking over the continent of Africa and not Ukraine and elsewhere. They can't fight China and Russia and bail everyone else out too. Arrest the illuminati.
Now the "military exercise" in ukraine involving 1000 u.s. and nato troops makes crystal clear sense.
Yes, it appears that the right sector/Nazi project was the CIA's plan all along. In other words, Ukrainian ISIS is in the making - just like predicted by The Center of Syncretic Studies. Once it is all up at running, and "the outrageous and monstrous beheadings of all those innocent parliamentarians" are well enough documented/CNN-nd, ABC-ed etc,etc... we will see NATO's saviors with their LGBT freedom fighters liberating newly holocaustedUkrainians from the NAZI plague.
If you're talking about the neo-fascists, I think that, if it gets to that point, Russia would step in. I'm pretty sure that most Russians don't like fascists very much, and once we've spun up the propaganda to go in and kick the crap out of them, Russia will then have a free hand.
C'mon, everybody loves a fascist. It just needs to be *their* fascist. Not that fascist fuck trying to exterminate them...we want that guy who's culling out all the other shit-birds on this planet.
Chinese love Chinese fascism, Venezuelans love Chavez-fascism, Frogs love French fascism. And they're all dirt-bags, to boot!
Listen. Syncretic Studies is a new Stratfor tentacle.
IMF is upset that the installed dictators haven't been able to start a war as they were directed to. Oh well.
"You promised us victory in six weeks Mein Presidente! Now we are forced to pull our dollar lines of credit.
For the Fatherland! Heil Douche!"
So Ukraine is printing hryvnia like maniacs. I thought Poroshenko was fully onboard the IMF plan?
Guess he doesn't have a tight rein on the ukraine central bank like he does the chocolate factory
I guess they are reverse syphoning more than just gas over there.
'Ukraine's "premature emission of extra money'
love that dirty Banker talk!, IMF in foreplay with the Ukraine.
Is this as serious as the" nocturnal emission" of Ukraine's gold by the West as soon as the junta took control?
Ukraine to get a taste of surogate warfare.
Wont be pretty.
You have an enemy. Its not you neighbor.
Vaya con dios.
The untrammeled avarice of the world's elites, on display, in this exhibit, "Ukraine". Same as much of the rest of the world; suck it dry, buy a Caribbean island.
you were wondering why they flew the gold out on first day of the american coup.
Tyler you repeatedly mislabel your charts! I happen to think what I see and I get confused wondering what are you talking about! it's USD/UAH!
Now, ask us for more loans and we will give you all the debt. In the meantime, prepare your assets for our land grab. Games coming to an end so we want everything on the cent.
The West has given enough rope, via IMF, to the Ukraine to hang herself.
As the Ukranian economy gets worse the Western oligarchs will bring in their freshly minted US dollars to buy the top assets of the Ukraine at pennies to the dollar.
Mission accomplished.
Double accomplished. The Rouble has been trashed so that the Russians couldn't move in to buy those assets cheaply.
Mind you there is quite a lot of Russian money hiding round the world that might be used.