• Lara 12:02 pm on February 23, 2015
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    Ukraine Tightens Capital Controls as Hryvnia Plunges to Record

    (Bloomberg) — Ukraine’s central bank unveiled a package
    of measures to help relieve pressure on the hryvnia, which has
    been battered by a recession and a pro-Russian insurgency in
    the nation’s eastern industrial base.

    The steps include a ban on loans to clients to buy foreign
    currency and increased control over import operations, central
    bank Governor Valeriya Gontareva told reporters Monday in Kyiv.
    The moves will help limit outflows of foreign currency,
    according to Gontareva, who blamed recent declines in the
    hryvnia on companies rather than individuals.

    The currency, the world’s worst performer this year, sank
    almost 11 percent against the dollar, according to data compiled
    by Bloomberg.

    To contact the reporter on this story:
    Daryna Krasnolutska in Kyiv at
    dkrasnolutsk@bloomberg.net

    To contact the editors responsible for this story:
    Balazs Penz at
    bpenz@bloomberg.net
    Andrew Langley

     
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