Hryvnia Devaluation Started

[BritKyiv]

Quote from a VERY reliable banking source today:
On 28 August hryvnia fell to USD/UAH 4.75 on the interbank market. The
devaluation was related to the increased demand for the US dollar by state-owned
Naftogas Ukrainy, which decided to buy USD 1.1bn for settling imported gas
accounts and USD 0.4bn for repaying foreign debt over the period of one month.
The dollar purchases will exceed the company's usual monthly demand by
around 75%.
The rise in Naftogas’ demand is related to the upcoming natural gas price
increase (more than 100% beginning in 2009) and the company intends to
increase its stored gas reserves, which will increase the hryvnia pressure for the
US dollar. At the same time, the NBU is not likely to sell dollars on the forex
market to revalue hryvnia, as it needs to keep reserves to cover 4-6 months of
imports with an increase in volume factored in. Therefore, the Naftogas-driven
demand, supported by other factors, may signal the beginning of a hryvnia
devaluation on the interbank market in 2008.

[P-N]

It almost matches that of the street traders then 

[EnglishMKiev]

General consensus in banking / broking circles is that the UAH / US$ rate will be around 5.50 within the next 6 months. Bit of a pay rise for those of you paid in dollars.

Joe

[BritKyiv]

Lets see how the street traders lower their rates this weekend.

This is great for those of us who BUY USD each month.

There will always be winners and loosers (FACT OF LIFE)

[P-N]

To be honest, as I have stated in a few historical posts on here (Feb/Mar), I was not going to buy back USD until October.  Still things have changed somewhat from the time of those posts though.......and September isn't that far out from my guesstimate.  Hayho!! - more fun with the banks then for a few days 

[ecocks]

Still 4.66 down here in Podil at 3:45PM on Friday.

[gladiator007]

Great news

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