Isn’t this going to lead to inflation of the hryvnia?
It will still be a manged exchange rate and they will target inflation as they move forward. I am not a financial expert, even less of one in wartime economies, but their plan to end the fixed rate seems measured, reasonable and straightforward.
Can’t manage without sufficient foreign currency reserves. You don’t depeg during a war because of “economic normalization” when your economy has collapsed by like 30% in the past year and you’ve bled half of your able-bodied men to either the frontline or the border.
you’ve bled half of your able-bodied men to either the frontline or the border.
It’s Russia who spills Ukrainian blood, let’s be clear about that.
But seeing your post history, you’re a Russian imperialist / apologist, so I guess you know that and just twist facts intentionally…
I said “bled,” what did you think I meant? Ukraine isn’t spilling their own blood, but they’re fighting a war they can’t win.
Of course Ukraine can win. But I understand why a Russian imperialist would like everybody to believe that Russia is undefeatable (even though Russia was defeated many times).
Ukraine’s attacking with fewer resources and fewer men in a war of attrition. Ukraine simply cannot win in that context.
This isn’t a case where Russia overextended their supply lines and can’t sustain an offensive (unlike the start of the war). Russia is currently in dug-in defensive positions holding high ground. Don’t be delusional about Ukraine’s odds in that situation.
Ukrainian strategy is fucking insane to watch and Russia simply isn’t incurring the losses necessary to pull out of the conflict.
Ukraine’s attacking with fewer resources and fewer men in a war of attrition. Ukraine simply cannot win in that context.
This offensive != war.
Ukrainian strategy is fucking insane to watch and Russia simply isn’t incurring the losses necessary to pull out of the conflict.
It will likely take a couple more years to see who will outlast who.
This is bad, right? Not an economist, but it seems like this would be bad…
Yes, very bad unless the US keeps throwing USD at Ukraine to keep their foreign currency reserves in decent shape.
