This page has been archived and commenting is disabled.
"Panic Must Be Stopped" Ukraine Central Bank Head Says, Boosts Capital Controls
Yesterday, when we observed the latest record plunge in the Ukraine currency...
... we predicted that the imploding, hyperinflating nation will "halt currency trading any minute." Again, because recall that this is precisely what Ukraine central bank head Gontareva did the day before, when the currency soared after all third party trades in the Hryvnia were blocked before the government stepped in and effectively shut down the market.
Well, Ukraine has so far not fully blocked all trading, yet, however hours ago Ukraine’s central bank did the next best thing when it announced it would "boost restrictions on capital operations as it fights to quell panic that has triggered deposit withdrawals and depleted foreign-exchange reserves, Governor Valeriya Gontareva said" cited by Bloomberg.
Among the actions implemented the central bank will strengthen limits on activities including paying dividends, and impose a regime of examinations on all import operations that exceed $50,000. The hryvnia rebounded from a record low as the only remaining player in the FX space remains the central bank, and at least today it was buying. A lot: "the hryvnia gained 25 percent to 27 per dollar by 11:56 a.m. in Kiev, rising from the lowest close on record Thursday. Changes in central bank regulation leading to a higher supply of foreign-currency on the market were helping the hryvnia’s appreciation, Stanislav Piletskyy, a Kiev-based treasurer at Citigroup Inc., said by e-mail."
The problem is that the ramp will certainly not continue once the latest buying spell is exhausted, now that all confidence in the Ukraine currency is now lost, and the central bank has effectively assured of an unhappy ending with statement such as “Panic must be stopped and we are doing that now,” Gontareva said. “For the time being, we are working not on canceling restrictions, but on new ones."
Needless to say, there is nothing that creates more panic than warning "panic must end or else..."
And as we noted in the "Endgame" article, Ukraine now faces an even bigger problem: running out of cash.
The central bank needs to strengthen bank owners’ responsibility as a prerequisite for the International Monetary Fund-led bailout, Gontareva said. The country can drop capital controls when hryvnia is “back to fundamentals,” she said, adding hryvnia should trade around 20 per dollar.
Depositors have withdrawn 17.2 billion hryvnia from banks this year, Gontareva said. Ukraine’s reserves stood at $6.4 billion as of Jan. 31, down from $20.4 billion at end-2013 before the country’s pro-Russian insurgency began.
Ukraine has lost two percentage points of its gross domestic product from the annexation of Crimea and 15 percentage points due to losing control over rebel-held areas in eastern Ukraine, she said.
Gontareva's punchline: "Ukraine has insufficient reserves, and huge capital outflow." Yes, we can see how that is a problem. And another problem: Ukraine made its bed and invited the west in it. It better hope that the west, and the IMF reciprocate, or else the entire nation will be completely insolvent as soon as 3 weeks from today at which point the country will run out of liquid reserves with which to fund imports and the economy grinds to a halt. All that will be needed then, is another coup to restore the balance that the US Department of State so eagerly destroyed a year ago with its sponsored military coup in Kiev.
The only sad aftermath: yet another failed nation.
- 11336 reads
- Printer-friendly version
- Send to friend
- advertisements -




Boosts Capital Controls
Mission Accomplished!
With the currency in freefall, reserves are almost depleted, a massive civil war and gas being paid for 24 hours at a time, it can't be much longer now.
Strategic food reserves looted as well during the lost civil war against the freedom fighters in donbass. Looks like the western taxpayer will have to feed through the poor Ukrainians who expected immediate prosperity and free cookies forever.
http://fortruss.blogspot.de/2015/02/normal-0-false-false-false-en-us-x-n...
Don't or get to bring a towel
Is this Yellen's cousin (in the picture)?
Valeriya Gontareva.. I wonder if she kept any souvenirs when she secretly gave up Ukraine’s gold.
Here is an interesting background story about a shitload of 'world heritage' gold that came out of Crimea and is now sitting in a museum in Holland 'for safe keeping' until this whole thing settles down, if that ever happens.
https://www.youtube.com/watch?v=E6TXsKF9QMk&index=10&list=PLFo85AKj-7T37...
Panic is therefore fully justified.
Yes, panic must be stopped while we take what's left of your money and call it capital controls.
They tried to clone Janet, but it didn't turn out right.
Behold, Mini-Yellen.
Giovanni - thank you for that website. Everyone should check it out. Does not feel like propaganda, unlike the ham handed bullshit sandwiches served up by western media.
It was the only place where I could find reliable information about the second civil war, in particular about the Debaltsevo Cauldron which received almost no coverage in the West and whose sheer existence keeps on being denied by the Kiev junta.
"reserves are almost depleted...". what is that word? reserves?
don't get all etymological on a post like this!
For Ukraine, currency control means restricting the supply of wheel barrows, needed to transport sacks of worthless currency to buy a few loaves of bread.
How many currencies not pegged to the USD have been plunging? Wheel barrows are almost a redundant metaphor now - try withdrawing the equivalent of USD5K anywhere in the world. Its the only time 0s and 1s on a computer screen convert to signing paper forms with ID checks.
Capital control doesn't work, the black rate will be the only one relevant.
Yep boost capital controls, THAT'LL stop the panic.
Just remember, he who panics first gets their money!
.
t looks like America has done it's work in Ukraine , turned it into a shit hole like all the other country's it touches ,Obama's work is done here now on to Syria to start WW111
Just delivering Freedoms. You're welcome!
Don't kid yourself. Ukraine was a shit hole long before the euro maidan riots and coup
Looking at your photo, you ain't exactly no oil painting yourself......
Ukraine is beautiful.
They need split off the pollacks
and find their inner Russian
I didn't mean the country or the people..... but people with bags over their head probably dont understand much.
what I meant was the country's political, economic and social fabric was in shit and tatters looooooooong before any of the currenct mess started.
You can find videos of them duking it out in parliament going back for years and years and years.
Corruption, graft and cronyism take on entirely new levels in Ukraine and always have. The social tensions between the different ethnic backgrounds go back 100's of years.
Tyler gave me the bag.
You said Ukraine is shithole. Ukraine would be the territory and people.
I took the meaning in clear English.
I understand perfectly...
you mistaked "Ukraine is shithole"
more than a little bite to
those of us who have concern for family, friends there
Nothing else is new...School yourself on Ukraine before tell others...
"Ukraine A History" Orest Subtelny Best book for English Readers. Author is of Ukraine heritage
"Remain calm. All is well! ALL IS WELL!"
~ Kevin Bacon in Animal House
NoVa
Still no comments on bitcoins...
No time for fancy crap now.....just get some gold.
Some say bitcoin is as good as gold. I know what else is as good as gold. Gold!
No stories about Ukrainians using gold to buy food, either... but its okay, the ZH prepper press will have another story for you to read about while you clean your ammo boxes while sitting on your chemical toilet...
Here we go !
https://localbitcoins.com/country/UA
This is, what Tel Aviv and Washington want. Chaos and instability.
And an empty country to occupy it and drain the resources.
Bibi and Obama .... the "Odd Couple" .... Hebe and Muslim !
Those of us who survive the coming WWIII will not have state governments to contend with any longer nor their price manipulations. There will be no taxes, no central banks, no bankers, no stock market, no derivatives. All that is needed for all of this to occur is to make public the recipe of the Thorium Plasma battery and centralized control will slowly evaporate faster than MGM's revenue at the hand of an army of 12 year old movie pirates..
If only the majority had access to the necessary items and a safe waste disposal plan. You are a complete idiot if you don't think there are hard limits on technology.
You are also forgeting the number one rule to maintaining power and control...
Knowledge is power
I think you know the rest.
Knowledge is not power. Applied knowledge is power!
FIFY
Do tell.
.
...WW3.
Fixed it for you. The pollyanna cornucopianism is a non sequitur.
"The pollyanna cornucopianism is a non sequitur."
Well i learned something today :)
The Pollyanna principle (also called Pollyannaism or positivity bias) is the tendency for people to remember pleasant items more accurately than unpleasant ones.[1] Research indicates that, at the subconscious level, the mind has a tendency to focus on the optimistic while, at the conscious level, it has a tendency to focus on the negative. This subconscious bias towards the positive is often described as the Pollyanna principle.
A cornucopian is a futurist who believes that continued progress and provision of material items for mankind can be met by similarly continued advances in technology. Fundamentally they believe that there is enough matter and energy on the Earth to provide for the ever-rising population of the world.
Non sequitur (Latin for "it does not follow"), in formal logic, is an argument in which its conclusion does not follow from its premises.[1] In a non sequitur, the conclusion could be either true or false, but the argument is fallacious because there is a disconnection between the premise and the conclusion. All invalid arguments are special cases of non sequitur. The term has special applicability in law, having a formal legal definition. Many types of known non sequitur argument forms have been classified into many types of logical fallacies.
now you've done it. I was already thinking that ZH's commentary is down at gutter level, and you both bring back the... poetry
do WW3, and all your worries are... gone. including taxes and... death. oh, and... you, too
but remember, there is no profit in global, open war. hence the mercenaries, the proxy wars and the "unmarked green men", the assassinations and the maneuverings
So, same as it ever then... gee, what "insight"... ...not.
Can't obama just appoint himself president of the ukraine? that might help...
When CBs say "don't panic" is exactly when it's time to panic... or rather, it's already too late and "fait accomplit".
Exactly! The west will do everything wrong until they run out of shitty ideas. Then they will do the right thing. Who knows when that will be.
Memo to Vicky:
More cookies please.
Valeriya looks a little like Janet's sister, no?
They are both uglier than a hatful of assholes.
I have <psaking>a high degree of confidence</psaking> that they are both specimens of an unusual variety of Yeti, the females of which appear to be drawn to ponzi-like operations and have an affinity for Three-card Monte.
Funny I thought I saw this broad working the cash register at a car wash in Jackson Heights Queens.
She will be soon.
"Im from the US government and I am here to help" run run and dont stop running
Are the "rebels" using Rubles yet?
Currency wars, then trade wars, then global shooting/killing wars...
same as it ever was.
"Colonel Hunger and Hyperinflation the Saboteur"
prescient indeed:
http://vineyardsaker.blogspot.de/2014/06/translation-of-must-read-articl...
when even the imf won't give you a loan, well, you're kind of, um, what's the word i'm looking for here?
Greenshootish?
Shovelreadyish?
Fucked?
Meanwhile:
Defeat in Debaltsevo: Kiev's Stalingrad * So much for those sanctions: Russian MICEX stock index is top performer so far this yearCurrency name inflation .... no currency should have more than .... D O L L A R .... 6 letters in it's name .... Hryvnia should be shortened .... Hernia .... that works !
English kids are taught .... a "Q" is always followed by a "u" .... in the Slavic states .... an "H" is always followed by an "r" !
Hey Monetas is that avitar the new official seal of the POTUS?
Interesting that Valeriya Hontaryeva looks just like a younger version of Grandma Yellenstein.
Maybe all these central banksters come out of a mold.
Well, Yeah ! .... all life began .... with moldy cheese .... don't they teach evolution anymore ?
I feel so dirty when I read this.
And not in a good way.
"Fuck Nuland!"
no no no, you got it wrong. It's way more fashionable to say "Fuck the EU"
Fucking idiots; in the history of the world, somebody tell me when "capital controls" have ever worked? And these are the "smartest people in the room"? WTF.
www.traderzoo.mobi
They've worked pretty well .... in suppressing the PM's .... and in pumping the pimps at CNBC ?
STOP PANICKING NOW!!!!
W
"Soul .... is the brevity .... of wit !" .... Monedas
It might be better for Ukraine if those green stripes on the charts were orange. This video sheds a little light on Governor Gontareva -
https://www.youtube.com/watch?v=GxukRFUfcr8
Ukraine wanted membership in NATO at one time (ostensibly for defense), what they should've said was "We want membership in NATO so when Russia moves, US troops will be (ignorantly) deployed to help us fight. (Or do the Lion's share of the fighting. I've met Ukranian officers, good guys but ...).
By the by, this is a country that USED to have nukes. They gave them up years ago with assurances that if this very (military) situation occurred, the "west" would defend them.
Nukes are like the recipe for ice. Never, EVER, give them up.
Wanted to add: I get Europe's reluctance to do anything militarily. Many of their "leaders" grew up in homes decimated by WWII. But there comes a point when you either fight or roll over on your belly.
Maybe it's like a buddy of mine said, "The best of Europe died 100 years ago in the trenches of the Somme, Ypres and Verdun. The rest has been bred out of them."
Hey, you want plowshares (huge social nets), fine. Sooner or later - you pay the price.
and getting caught between warring empires? been there, done that. for which specific province do you suggest we have to spill the blood of our young?
They better be careful carrying all that cash to buy some bread; they could give themselves a hryvnia.
The show's not over till the fat lady sings. A choice of two here.
"The beatings will continue until morale improves!"
Herr Emanuel ZWO general is working on that in Chicago right now.
Well, two options now!
1/vote urgently to accept all reforms that the IMF suggested and hopefully get some cash by Monday - Good luck on that since IMF will not meet until Mar 11 to discuss it
2/ Enact capital controls immediately and default on all loans which are worth zilch anyway
Then might as well declare martial law as the Ukraine govt will need the security. Such a sad denouement to a greedy leadership! Once again, it is the people that will suffer!
Judging by past military performance, martial law might not be that easy for them. Only way I could see that working is if the entire population was conscripted.
Someone help me out...did Putin cause this to happen or is it George Bush's fault?
That's a hard call.
Follow the money:
http://21stcenturywire.com/2014/03/21/the-latest-heist-us-quietly-snatch...
Stop the U.S. from sending weapons to Ukraine. Sign the petition to the U.S. Senate and pass it on. From the Saker's website:
http://diy.rootsaction.org/petitions/no-weapons-to-ukraine
That chart looks great to me. Bottom right to up and left.
I have 65,000 ukranian hyrivna's fiat in the US that I can not get converted to dollars. My employee came back from Kyiv and said that the street money changers were completely out of dollars. That was 2 weeks ago. Her friends say it is worse now. For reference 2 years ago it was 8 hv per dollar now it is over 30 officially except banks are out. The black market of Kyiv street hustlers have dollars in stock at 60 hv / $.
about right
yesterday was 45-50
big crackdown on traders
Kiev should start to print Roubles.
The Ukrainian hryvna is getting so worthless that it cannot even buy a US congressman, except Barney Frank maby.
Will somebody explain exactly how an American supposedly just became the Ukraine finance minister in a hush hush swearing in blitz ceremony where she became a Ukraine citizen? And of course she is ex JPM or was it ex GS?
She's STILL a US citizen, ex-Harvard, ex-US State Dept, ex US Embassy in Kiev and former fund manager. Here she is struggling to keep a straight face when the 2015 Ukie budget was approved at the end of December: http://en.dyvys.in/photos/500/016/16618.jpg
She's only a joint Ukie citizen for up to two years - though it looks like a couple more months might be all she'll need.
Robert Parry did a pretty thorough piece on her, here
New Ukrainian national anthem
https://www.youtube.com/watch?v=Dv_Q-heLs40
“Panic must be stopped”... only a matter of time before some US-NATO scumbag decides it should be stopped with lead.
Ukraine Prepares for an Attack Against Russia 2-27-15
By: Eric Zuesse The post-coup leaders of Ukraine have routinely said that Ukraine should destroy Russia; and, now, starting on February 24th, they are placing into position the key prerequisite for doing so, which is the advanced Anti-Ballistic-Missile, or ABM, system, S-300, which is described as follows by wikipedia: “The S-300 is regarded as one of the most potent anti-aircraft missile systems currently fielded.[3] Its radars have the ability to simultaneously track up to 100 targets while engaging up to 12/24/36 targets. The S-300 deployment time is five minutes.[3] The S-300 missiles are sealed rounds and require no maintenance over their lifetime. An evolved version of the S-300 system is the S-400 (NATO reporting name SA-21 Growler), which entered limited service in 2004.” http://fortruss.blogspot.com/2015/02/ukraine-prepares-for-attack-against...
I don't think that Russia will feel particularly threatened by S-300s. The only thing that the Ukrainians have ever hit with an S-300 is Siberia Airlines Flight 1812 (a commercial flight) which was shot down by the Ukrainian military over the Black Sea on 4 October 2001.
Ukraine banned the testing of Buk, S-300 and similar missile systems for a period of 7 years following this incident. Ukraine’s acting Defense Minister Ihor Tenyukh described the combat readiness of the country’s armed forces as “unsatisfactory” in his 12 March 2014 report to the acting president. Tenyukh said recent exercises demonstrated a “dismal degree of preparedness among servicemen and lack of military specialists, equipment and weapons” in the Ground Forces, the Air Force and the Navy.
The country’s air defense troops had received little training because of the 2001 ban on missile launches imposed after the crash of a Russian Tu-154 passenger jet. The ban was lifted in 2008, but so far only 10 percent of Air Defense Forces servicemen “have mastered the required level of theory and practice,” the report said.
Just a minor point: if you really wanted to defend Kiev against an attack from Russia would your natural first choice be to put S-300s in Odessa? Don't they have any maps?
The beatings will continue until morale improves. BTW, thanks for buying the stick.
Fight Club:
Louna Fight Club Ukraine War:
https://www.youtube.com/watch?v=HcsgIjoTC-E
Live performance Russian:
https://www.youtube.com/watch?v=-sdPd7tdTh0
Live with English lyric:
https://www.youtube.com/watch?v=I1LMJ7xpDm4&spfreload=1
Crimea fortunately avoided this.
So far. US/NATO/MSM is still adamant that Crimea was "annexed by Putin". Their view is that a vote/referendum is only ever valid if it produces the desired outcome.
Last time it was the Bolsheviks who inflicted mass starvation on the Ukrainians, this time it'll be the US "Let them eat Apple Pie" Obama's.
So, each nice and beautiful building in the center of Kyiv will cost about $50,000.
Tell that to the Chinese who buy plain yellow boxes in California for $1,000,000.
Ukrainian billionaires with their own armies will buy everything.