Foreign investors expect a drop in hryvnia

Investors refuse to invest their funds in the Ukrainian hryvnia, according to the American edition of The Wall Street Journal in the article “Interest in the Ukrainian hryvnia become gold”. The fears of investors intensified at the beginning of this month, when Moody's and Standard & Poor's reduced the credit rating of Ukraine in fact to the “garbage”, and negotiations with the IMF were postponed until January.

Investors are also concerned about the return to the position of Prime Minister Nikolai Azarov, because he opens against raising gas tariffs for the population, and this is one of the necessary conditions for continuing cooperation with the IMF.

The investors now do not have the question of whether the hryvnia will fall, they are interested in how far the fall will go, and how quickly it will happen.

“As soon as we see that Ukraine is ready to seriously cooperate with the IMF, investments will immediately begin,” said Mr. Sabo, the manager of the investment company, Aberdeen Asset Management, adding that investors should be sure of the Ukrainian currency, rather than waiting for some new currency explosion.

Goldman Sachs analysts expect hryvnia devaluation by about 30% in the second quarter of 2013, while Barclays predict a 20% course leap. According to experts, the conclusion of an agreement with the IMF is crucial for improving the attitude of investors to Ukraine.

Recall that the government approved the plan of measures to promote the activities of foreign investors. The corresponding order developed by the Ministry of Economic Development of Ukraine was adopted on December 19, 2012 at a meeting of the Cabinet of Ministers of Ukraine.