‘Privatbank’ Factor. Three Reasons Why the Currency Rate Will Not Return to Its Former Place


‘Privatbank’ nationalization will obviously blow up an exchange rate in the next few weeks. That is a usual reaction of uncertainty and shock events, ‘The Price of the State’ experts commented to the ‘Ekonomichna Pravda’ (‘Economic Truth’) on the news of the nationalization of the bank.

However, we see at least three reasons why after the first burst of emotions the currency rate will return to its former levels:

1) The nationalization is not a liquidation;

2) Capital increase;

3) The exchange rate is now in balance.

December 20, 2016