Ukraine’s hryvnia currency plunged about 30 percent against the dollar on Thursday, traders said, after the central bank abandoned the foreign currency auctions that had effectively pegged the exchange rate.
The central bank scrapped the daily auctions, which had set an unofficial peg for banks to follow, and also raised its main interest rate to 19.5 percent on Thursday as it sought to avert a Ukrainian financial collapse, brought ever closer by fighting in the country’s east and a lack of foreign funding.
With the hryvnia declining even before Thursday’s drop, and Ukraine’s foreign exchange reserves falling to $6.4 billion – barely …read more
Source: Voice of America
