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“This measure will increase the reserves of the National Bank of Ukraine and help stabilize the exchange rate,” the Ukrainian premier said.
The Ukrainian hryvnia has been depreciating rapidly lately amid a further contraction in the county’s GDP and the continued armed standoff between east Ukraine self-defense militias and the pro-Kiev troops in the Donetsk and Luhansk regions.
Yatsenyuk earlier said the Ukrainian economy would not be able to function normally at an exchange rate of over 12 hryvnias per US dollar. The Ukrainian currency is currently trading at a rate of 16 hryvnias per US dollar on the black market.
Kiev is pinning hope on a new loan tranche from the International Monetary Fund to stabilize the country’s foreign exchange market. The IMF is expected to consider the loan disbursement on Friday.