Valeria Gontareva
Judging by what is happening on the foreign exchange market, Mrs. Gontareva (Read more about her in the article by Valery Gontarev. The glitz and machinations of the Queen of Coins) a lot of good ideas. And if she implements at least a couple more, the Ukrainian economy will definitely die.
Because there is no point in the NBU’s actions to manage the exchange rate – just one big experiment.
What Gontareva “performed” yesterday on the foreign exchange market is both evidence of her complete lack of professionalism and proof of puppyish submission to the demands of the Presidential Administration, which (and not the economy) now determines what the hryvnia exchange rate will be until the economy finally dies.
Remember the old joke about a Jew who went to the rabbi asking what he should do with the chickens that were dying – the rabbi advised him to either paint the chicken coop red, or move the door to the south side, or feed the chickens loaves of bread. When everyone died, the rebbe was upset – after all, he still had so many good ideas.
Judging by what is happening on the foreign exchange market, Mrs. Gontareva also has a lot of good ideas. And if she implements at least a couple more, the Ukrainian economy will definitely die. Because there is no point in the NBU’s actions to manage the exchange rate – just one big experiment.
There is nothing surprising here. Mrs. Gontareva was never a banker. But she was always involved in schemes with securities, as well as buying up undervalued assets for their subsequent resale.
And this, probably, is the meaning of her stay at the NBU for Mr. Poroshenko, who keeps her in the central bank not thanks to, but in spite of.
During the 8 months of Gontareva’s stay at the National Bank, the hryvnia devalued by 300% – from 11 to 40 hryvnia per dollar. That is, for those who had currency in their stash, Valeria Alekseevna brought enormous profits for her short work. And the opportunity is to buy assets much cheaper than their cost.
Actually, this is, as Gontareva herself likes to say, the “economic justification” for her stay at the National Bank.
With the exchange rate at 40, it’s time to start large-scale privatization. And to defraud the population of their deposits, who have been foolishly and repeatedly defrauded over the past year. Moreover, each time according to the same scheme.
The President gives “Madame Chairman” instructions on what the exchange rate should be, after which she diligently tightens the screws on the foreign exchange market, which causes another collapse in the exchange rate. Then they tell us about the “economically unjustified course,” and another collapse occurs.
This happened in May, when we were promised a rate of 10 UAH. for a dollar. Then, in September, when they promised 12.95. Yesterday, Mr. President demanded (?!!) from the National Bank to set the exchange rate to 21.7 UAH. for a dollar.
And the way this requirement was fulfilled became an excellent illustration of the insanity that is happening in the National Bank, and in the system of Ukrainian government as a whole.
As you know, to set the exchange rate to 21.7 UAH. for the dollar, Gontareva prohibited banks from buying foreign currency for clients. And she carried out a banal expropriation – with the help of banking supervisory officers, she threatened the banks with the introduction of a temporary administration for failure to comply with currency position standards and required reserves. And she demanded to sell currency from her own stash. Which I bought for 21.7 UAH. per dollar (though only 600 thousand dollars).
And no market for you. No course formation.
By the evening (this coincided with the onset of morning in Washington, where the IMF headquarters is located), Gontareva’s fit of diligence passed. And the National Bank set a purchase rate close to the official one – 28 UAH. per dollar, lifting restrictions on the interbank market.
The IMF, apparently, went nuts. And the black market rejoiced.
Another panic prompted Ukrainians, distraught by this nonsense, to hand over currency at 27-28 hryvnia per dollar. Which tomorrow the exchanges will sell for 40-45.
Tricks with the exchange rate, which are arranged by crazy managers of the National Bank in UGG boots, indicate to a normal businessman only that it is better to hide foreign currency earnings and nowhere else. Because if tomorrow Mr. Poroshenko demands from Gontareva an exchange rate of, for example, 8 hryvnia per dollar, then the currency will be taken away altogether “for lack of money.”
In the meantime, the foreign exchange earnings of exporters will “rest” in offshores, we will experience new heights on the interbank market and in the cash market.
40-50-70-100… – there will be no limit to the fall of the hryvnia until there is a limit to the stupidity and greed of those who, by the will of fate, received the right to manage the financial system.
“Zdobuli.” And they deserve it. Shanuymosya.