On May 21, the National Bank of Ukraine pushed the value of the national currency, the hryvna, from 5.05 to the U.S. dollar to 4.85. The hryvna was revalued despite the National Bank Council's veto.
"In particular, the country's metals sector will lose more than 4.2 billion hryvna (about $840 million), the chemical industry 970 million hryvna ($194 million)," Natalia Korolevskaya said, adding that the decision to reduce the dollar/hryvna exchange rate was politically motivated.
"There is no economics in the decision. This is actually a political decision to counter the government's policy and bring additional difficulties to the government, Korolevskaya said.
However, Volodymyr Stelmakh, board chairman of the National Bank of Ukraine, defended the move, saying the hryvna revaluation would help reduce consumer price growth in the ex-Soviet republic.
Consumer price growth in Ukraine stood at 9.7% in the first three months of the year, the highest figure among member countries of the Commonwealth of Independent States, a loose association of former Soviet republics.
Ukraine's exports totaled $13.79 billion in the first three months of 2008.
