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Ukraine: IMF Welcomes New Currency

  • Robert Lyle

Washington, 16 September 1996 (RFE/RL) - The International Monetary Fund (IMF) has welcomed the introduction of the new hryvnia currency in Ukraine.

IMF Managing Director Michel Camdessus says in a statement that the new currency and the government's continued commitment to the reform and stabilization program agreed with the IMF earlier this year have helped reduce inflation and stabilize the exchange rate.

The Kyiv government today lifts the nation-wide price freeze put in place two weeks ago when the hryvnia was first introduced. The fund said the ending of all administrative and foreign currency account restrictions associated with the change are also important steps toward the recovery of the Ukrainian economy.

Today also marks the end of the two-week period during which people can exchange their interim karbovanets currency for hryvnia. After today, the hryvnia will be the sole legal tender for Ukraine.

In addition to the public exchange of currency, Ukraine had to exchange its international monetary holdings into the new currency.