Ukrainian hryvnia drops 30% after central bank action
Currency plummets after 550bps increase in key discount rate
The hryvnia has taken a nosedive following the National Bank of Ukraine's (NBU) decision to scrap daily foreign exchange auctions - despite a parallel increase in the bank's key discount rate from 14% to 19.5%.
The hryvnia had lost half its value against the US dollar in 12 months prior to today. It fell by an additional 32% in the hours following the announcement.
"It's off the charts," says Benoit Anne, head of global emerging market strategy at Societe Generale. "It's a once-in-a-life-time
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