Ex-finance minister: NBU’s policy could result in shocks to currency market and …

Former Ukrainian Finance Minister Viktor Pynzenyk, who won a seat in parliament on the election list of Vitali Klitschko’s UDAR Party, has criticized the policy of the National Bank of Ukraine (NBU) and said it could result in serious shocks for the foreign exchange market and a deep devaluation of the national currency, UDAR’s press service has reported.


We see absolutely unprofessional decisions, in particular, the limitation of the term of the return currency earnings and the mandatory sale of currency. I never thought that a 15% tax on currency exchange could be introduced. It could happen tomorrow. Then there will be another decision – a state monopoly on currency, and the exchange rate will be set at ten kopecks per dollar,” he said on TVi channel.

Pynzenyk also said, while commenting on a bill introducing a tax on the sale of foreign currency, that this decision would oblige the currency market to go into the shadows.

“The author of the bill correctly wrote that the goal of this document is to limit the circulation of currency. He will achieve that – there will be no currency. It all will go into the shadows. But currency is the anchor of the entire economy!” he said.

Apart from the problems with the exchange rate, the ex-minister also said that the Ukrainian economy was deteriorating, “the budget was not fulfilled by about UAH 35 billion, and there has been no money on the treasury account for a few months.”

Pynzenyk said that the current budget deficit was large.

“I’m not concerned about this situation, because it’s always possible to cope with a situation. I’m concerned that they are not responding to this situation and are not trying to take proper measures,” he said.

First and foremost, in his opinion, a balanced budget is needed to stabilize the economy.

“The country cannot live in debt. The country should live within what it earns,” Pynzenyk said.

As reported, the law envisaging the introduction of a fee from individuals to the Pension Fund on the sale of cash in the amount of 15% of the transaction amount could come into force in February 2013.



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