Thursday 26 September 2013

Russia Sees Belarus, Ukraine Risking Currency Crises - Bloomberg

Russia Sees Belarus, Ukraine Risking Currency Crises - Bloomberg:

"Russia’s western neighbors Ukraine and Belarus may face currency crises as their current-account deficits swell after demand for exports has weakened, according to Russia’s Economy Ministry.
Ukraine’s widening current-account gap may trigger a further weakening of the hryvnia this year, while Belarus may devalue its ruble by 37 percent against the dollar next year, the Economy Ministry, which oversees macroeconomic forecasting for the Russian government, said in a report dated Sept. 24.
“Supporting the managed exchange rate of the hryvnia is putting more pressure on the gradually declining currency reserves,” the ministry said. “Deflationary processes could turn into inflationary already this year as a result of a possible fall in the hryvnia along with the Ukrainian central bank halving its interest rate to 6.5 percent.”"

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