For more information, get in touch with our team:
+44 7918 53 08 73
Hint mode is switched on Switch off
  • High performance interface for global bond market screening
  • Full information on close to 500,000 bonds from 180 countries
  • 100% coverage of Eurobonds worldwide
  • Over 300 primary sources of prices
  • Ratings data from all international and local ratings agencies
  • Stock market data from 100 world trading floors
  • Intuitive, high speed user interface
  • Data access via the website, mobile application and add-in for Microsoft Excel

Commerzbank EM Country Briefing - Ukraine: The exchange rate problem

October 11, 2012
The cost of defending currency stability in Ukraine is rising. Monetary policy is tight, interest rates show excessive volatility, while real sector activity has been slowing sharply. Ukraine’s external deficit has been widening on the back of its energy trade. The government plans to cut Russian supply to a minimum and increase domestic and other sources, but over the medium term the energy deficit is likely to remain high. As global steel demand has weakened, so have Ukraine’s terms of trade. In our view, for any measure of stability Ukraine will have to restore its IMF program, which will require increased exchange rate flexibility. Ukraine’s dollar peg is inefficient in European trade and in light of the country’s heavily cyclical commodity revenues. Increased currency flexibility will in our view involve devaluation in the course of the coming months

For more details please go to our Comments section