Ukraine’s central bank confirms measures to stop capital flight
Ukraine’s central bank has put out a statement saying it’ll "take measures to stop capital flight" from the country.
Let's just hope nobody starts muttering "capital controls".
Stepan Kubiv, the bank’s chairman, also said it wants the International Monetary Fund (IMF) to prepare a financial aid programme, after the government's finance minister said the country's looking for $35bn in aid over the next two years.
Kubiv added the new government would quickly have its own anti-crisis programme ready, and that such a plan would be in place tomorrow or Friday.
The bank won't intervene in the foreign currency market to protect the hryvnia over coming days, it said. Earlier today, it was announced that it had abandoned a managed exchange rate policy, in favour of a flexible currency.
The floundering currency hit a record low today, taking its losses this year to 19 per cent. It's currently at 9.4 per dollar.
Ukraine has a 7.7 per cent public deficit and a 9.1 per cent current account deficit, against official foreign exchange reserves of just $16bn, according to a recent UBS note.
UBS economist Anna Zadornova has said the economy is in desperate and urgent need of a long-term solution.