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Deputy Premier Serhiy Tigipko(Pictured) says the Ukraine is considering capital controls to prevent short-term investments from fueling volatility.
The hryvnia fell 45 percent against the dollar in the 12 months through August 2009, making it the worst performer among more than 170 currencies tracked by Bloomberg.
“I’m certain that it’s necessary to carefully monitor the so-called hot capital which will be entering Ukraine,” Tigipko, 50. “If we see large volumes of short-term money, then it will be necessary simply to restrict such volumes. It’s not so difficult to do.”
Countries around the world, from Brazil to South Korea, are struggling to prevent speculators from affecting their currencies as policy makers warn of a “currency war” to boost exports through weaker exchange rates.
