FX: UAH down in trade-weighted terms

Макроэкономика 09.10.2014 The hryvnia again held steady at 12.95/USD yesterday on US$145.64m in trading. As the elections approach, the rate is likely to remain unchanged. Although it still remains unknown when the currency will be de-pegged, the IMF programme specifies that it should be eliminated soon after the election. Contrary to this view, authorities may decide to experiment with pegged currency to contain inflation, particularly since it jumped 2.9% MoM in last month. Meanwhile, the hryvnia's trade weighted index was on the decline (albeit a small one) as its nominal rate has been fixed to the USD and the latter has depreciated yesterday, but it appreciated sizably over the past three months.