Ukraine's battered national currency plummeted some 10 percent Monday as the central bank scrambled to strengthen currency controls in its latest bid to halt the slide. The average rate for the hryvnia - currently the worst performing currency in the world - tumbled to 31.51 to the dollar before improving slightly.
The hryvnia lost some 50 percent of its value in 2014 as east Ukraine collapsed into conflict following the ouster of pro-Russian president Viktor Yanukovych last February. The pain has continued with the currency plunging even faster since the start of the year as fierce fighting flared again in the eastern industrial heartland. In an attempt to limit the slump, Ukraine's central bank announced it was banning lenders from giving out loans to companies to buy foreign currency and tightening controls on imports.
"The national bank will use all the measures at its disposal to calm the situation on the market," national bank chief Valeriya Gontareva was quoted as saying by news agency Interfax-Ukraine. Ukraine's economy shrank 7.5 percent in 2014, with a further contraction of 5.0 percent expected this year. The International Monetary Fund agreed earlier this month on a new bailout for Ukraine worth $17.5 billion, with the total the country is set to receive from international donors rising to $40 billion over the next four years.
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