There were no grounds for the government to devalue the hryvnia by 3.3 times

10:19 16.05.2018

Batkivshchyna Party leader Yulia Tymoshenko believes that devaluation of the national currency and destruction of the country’s financial and banking systems in recent years was the result of deliberate actions by current officials. Batkivshchyna knows how to fundamentally change the country’s financial and economic course.

“The mechanism that triggered the destruction of the country’s economy and finances was the threefold decrease in the hryvnia rate – you could equate it to a nuclear explosion. But I can firmly say that there were no grounds when the rate was 8 hryvnias to the dollar for the value of the national currency to decrease by 3.3 times,” Yulia Tymoshenko said on channel NewsOne.

The parliamentarian recalled that after the global financial crisis of 2009, Ukraine’s national currency stabilized at 8 hryvnias to the dollar. But under the new government after the Revolution of Dignity “the prosperous country collapsed before our eyes in months” when the currency rate dropped to 26 hryvnias to the dollars. To support the argument that this was an artificial devaluation, Yulia Tymoshenko referred to The Economic magazine’s so-called Big Mac Index used to measure global currency values.

“According to the Big Mac Index, Ukraine’s currency is undervalued threefold! This means that there were no grounds to decrease the value of the hryvnia from 8 to the dollar by 3.3 times,” she said.

Yulia Tymoshenko also said NBU policy must change fundamentally if we are to build a strong Ukraine, and her party knows what steps must be taken. The first is to “return the NBU from external to national management.”

“This means the head of the NBU should but a patriot and a professional with excellent knowledge of monetary policy instruments, not be a corrupt puppet like Hontareva,” she said.

The head of the Batkivshchyna Party also said that the NBU should be open to control by society and parliament, and not be an “instrument for making money.”

“The NBU should be placed under parliamentary and public control and open for detailed analysis. After the election, the new president will review the work of the NBU over the past 4 years and publish a report on how our country was destroyed financially and economically,” the parliamentarian said.

Yulia Tymoshenko also touched upon an important aspect of the destruction of the national currency – the destruction of the banking system. She explained that since January 1, 2014, “98 of the 180 banks in Ukraine were destroyed deliberately, groundlessly and brutally, while some people even profited.”

“After the ‘reform’ of the banking system, it became clear the Ukrainian banking system was not profitable. And all the NBU’s policies were aimed at the destruction of the banking system, starting with the destruction of the national currency and ending with its effect on banks,” the head of the Batkivshchyna Party said.

According to her, the collapse of the national currency and banking system destroyed the middle class.

“302 billion hyrvnias of deposits died as a result of the destruction of the banking system! 32 billion were deposits of individuals and 270 billion were deposits of legal entities – the current accounts of our businesses. One big blow and there is no middle class in Ukraine!” she explained, adding that she believes this a “technology being used against Ukraine.”

Yulia Tymoshenko also explained that after the elimination of banks in Ukraine, the middle class lost assets worth 448 billion hryvnias, which is equal to a quarter of the Ukraine’s GDP and in real terms is almost half the GDP.

“But the dependent Deposit Guarantee Fund estimated this property at 99 billion hryvnias – a quarter of the actual figure! What is this? It means the government’s puppets working for the large global oligarch and clan system will be making big money on this,” the head of the Batkivshchyna faction said.

Yulia Tymoshenko concluded by saying that this situation is unacceptable and that the country needs a radical change in course, something that will be done by the new government after elections in Ukraine.

“Once the government changes, we will need to analyze what assets went to whom at what price and who got this trillion hryvnias! We will analyze every asset and do everything to return them to the country,” the parliamentarian said.