The devaluation of hryvnia will be hidden until March - Ernst and Young

The hryvnia will be kept “afloat” until March to prevent the increase in repayment of debts accumulated by the Government of Ukraine. This is stated in the review of Ernst and Young.

“The inevitability of the accelerated devaluation of the currency, hidden until March 2013, to prevent the increase in the cost of repayment of debts, excluded any monetary liberalization designed to increase internal investments, and foreign investments were sharply reduced on the eve of the elections in October,” the document says.

According to Ernst and Young, in the future, it will be difficult for Ukraine to provide reducing reserves to support the national currency, given the possible export in 2013.

“Most likely, it will take a new round of negotiations with the IMF before the trust of investors is restored. But before the recovery of reserve funds, the election fiscal decline must be overcome, ”experts emphasize.

However, they emphasize in Ernst and Young, even if it is possible to avoid significant devaluation of the national currency, inflation will inevitably return to the country with rising fuel prices and food prices.

Recall that the Prime Minister of Ukraine Nikolai Azarov is confident that there will be no vovals of the national currency this year.

Meanwhile, the World Bank predicts the fall in the Ukrainian hryvnia to 8.7 UAH per 1 dollar in 2013.