Ukraine's currency falls

Photo: Trevor Coultart

Ukraine's currency has continued its fall this week, prompting the country to seek an emergency bailout from the International Monetary Fund.

Ukraine's economy has traditionally relied upon imports of gas from Russia, as well as exports trading in the other direction. With the annexation of Crimea and conflict between the neighbours ongoing, though, the nation's economy has struggled.

Liza Ermolenko, of Capital Economics, tells the Guardian: "Exports have been crashing, because Russia is such a big market. Ukraine is in a very difficult situation, and it’s going to be in a difficult situation for some time."

As a result, Ukraine's currency, the hryvnia, has suffered significant losses in value. The central bank raised interest rates by 5 per cent yesterday to support the currency, but much like Russia's attempt to do the same last month, the country's currency could not be propped up. Instead, the hryvnia fell more than a third on foreign exchange markets, as pressure grows upon the country negotiate a bailout from the IMF.