Ukraine's hryvnia plummeted 30 percent against the dollar to a new record low Thursday after the central bank abandoned its efforts to prop up the currency. The battered hryvnia - currently the worst performing currency in the world - tumbled to 24.6 to the dollar before recovering slightly. The hryvnia lost some 50 percent of its value in 2014 as east Ukraine collapsed into bloodletting following the ouster of pro-Russian president Viktor Yanukovych last February.
Thursday's sharp fall in the national currency came after the national bank said it was ditching daily foreign currency auctions it used to keep the hryvna falling too fast and was instead boosting its key discount rate by 5.5 percentage points to 19.5 percent. "The main reason for this decision is the rise in inflationary risks," the central bank said in a statement. Annual inflation rose to almost 25 percent in December. Ukraine's foreign currency reserves have also fallen to their lowest point in over a decade to just $6.4 billion, the bank said.