hryvnia

From an exchange rate of 1 USD = 8.20 Hryvnia in mid December, the exchange rate in the beginning of March was 1 USD = 9.86 Hryvnia, a devaluation of 20 per cent.

But the national bank, through a policy of regular interventions and other regulatory measures, prefers to keep the hryvnia pegged at 8 to the dollar for political reasons, presenting it as a symbol of stability.

The Ukrainian government plans to offer 20 billion hryvnia ($2.5 billion) of five-year value-added-tax bonds with a maturity of five years and an annual interest rate of 5.5%, stated Prime Minister Mykola Azarov.

The resignation is unlikely to impact the central bank's fight against the weak hryvnia currency as Savchenko had been stripped of major responsibilities but is another blow to foreign sentiment on Ukraine, embroiled in political infighting.

The hryvnia currency sank to a new historic low of 12.9 to the pound on Tuesday, despite central bank intervention and the announcement of a foreign currency auction for yesterday.

The Ukrainian side yesterday announced tickets will cost from three to100Ukranian Hryvnia - which converts to 31pence to pounds 10.49.

During this period, net hryvnia retail loans increased by 7.4% or 39.2% yoy.

The country's difficulties have also resulted in depreciation of the Ukrainian hryvnia, which has led to a severe contraction in USD denominated premiums.

The importance of reaching a deal was demonstrated by a dramatic collapse in Ukraine's hryvnia currency, which lost nearly a third of its value after the central bank halted daily auctions at which it sold hard currency to banks.

We maintain our expectations for growing external account imbalances to drive a devaluation of the hryvnia by end-2013.

The local currencies - the Ukrainian hryvnia and the Polish zloty - are both available over the counter from the Post Office.

Ukraine's Ukreximbank has priced a USD300m (UAH2.385bn) three-year global bond, denominated in Ukrainian hryvnia, at par to yield 11 percent, Dow Jones has reported citing a person familiar with the matter.