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ukraine central bank funneling hard currency abroad

EO 11110

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#1
http://zik.ua/en/news/2014/02/06/sbu_central_bank_help_to_funnel_hard_currency_out_of_ukraine_458735

SBU, Central bank help to funnel hard currency out of Ukraine

The hryvnia has dropped because under fake import contracts, Ukraine’s mighty are funneling hard currency abroad – with the help from the Central bank and security service, former Economy Minister Ihor Umansky told Kanal 5 TV Feb. 6.

“Sales market volumes have soared several times,” he said.

“It means that somebody is funneling currency abroad under fake contracts with foreign partners.

“Only several Ukraine banks are involved in the transactions. The money transfers are approved by the Central bank, with the SBU turning a blind eye,” he said.
 

EO 11110

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#2
http://www.kyivpost.com/content/business/sorkin-likely-to-stay-as-nbu-head-for-now-337422.html

In a bid to keep relative transparency and predictability to the country’s financial policy, Igor Sorkin, the current chairman of the National Bank of Ukraine, is likely to stay put at least until the political crisis blows over in a bit to keep stability – that is, assuming he’s not implicated in serious corruption.

On Feb. 7, the central bank under Sorkin introduced a more flexible exchange rate for the hryvnia at what appeared to be an attempt to meet the lending requirements of the International Monetary Fund. This became a significant liberalization of the NBU’s monetary policy that will help Ukraine get back to the negotiating table with the IMF for a new bailout loan to ease the risk of default.

On Feb. 22, IMF director Christine Lagarde said that the fund is considering a financial lifeline for Ukraine.

“Ukraine is a member of the IMF. If Ukraine asks for help, economic or financial, we are ready to provide it… But any discussion means there are at least two sides, and so far the IMF does not know whom to talk to in Ukraine,” Lagarde said.

On Feb. 23, European commissioner for economic affairs Olli Rehn said the European Union is also ready to provide the financial help.

Sorkin, at least, can be found in the country, while the location of many former government officials remains unclear today
 

EO 11110

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#3
protestors slaughtered when they approached the central bank

http://www.theguardian.com/world/2014/feb/20/ukraine-dead-protesters-police

The deafening noise included the clear sound of automatic weapons, as well as smoke and percussion grenades raining down on an avenue leading away from the square towards the parliament and the central bank. Demonstrators also reoccupied government buildings evacuated earlier in the week. Busloads of common riot police swiftly deserted the scene of the battle to be replaced by the special units of the Berkut security service. They, too, retreated very quickly, allowing the protesters to advance.

Dead and wounded were hauled away on their backs, on wooden planks, on makeshift metal shields and in blankets. Corpses lay temporarily abandoned on the streets. Police vehicles were set ablaze and then hacked to pieces.

Protesters ducked behind trees and ran for cover as police opened automatic gunfire. But by mid-morning the city centre was firmly in the hands of the opposition. The police seizure of the part of the square which cost 28 lives on Tuesday was finished, however temporarily. Some 60 riot police surrendered or were "taken prisoner" when the protesters stormed the police lines.
 

gringott

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<SLV>

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Ahillock

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Lots of reports of Ukrainian bankers and elite leaving the country in the days leading up to the collapse in private jets with loads of cash and gold.

I'm curious how much of the 36.4 tonnes of gold reserve are still in Ukraine? Probably not very much.
 

Ebie

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#8
Lots of reports of Ukrainian bankers and elite leaving the country in the days leading up to the collapse in private jets with loads of cash and gold.

I'm curious how much of the 36.4 tonnes of gold reserve are still in Ukraine? Probably not very much.
Maybe, afterwards, they could hire those pilots to get Germany's 300 tons back home?
 

Goldhedge

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EO 11110

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#10
Nothing like some fiat debt to start things off on the right foot...
yup, the thing is following 'economic hitman' script

any leader resisting frn inc's demands is hazardous to him and his countrymen's health and wealth
 

EO 11110

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#12
http://www.bloomberg.com/news/2014-02-23/ukraine-interim-leader-warns-of-economic-danger.html

Lawmakers appointed Stepan Kubiv, the ex-chairman of Lviv-based VAT Kredobank, to head the central bank after voting out Ihor Sorkin. The monetary authority this month introduced capital controls to halt the hryvnia’s slide after the currency fell to a five-year low against the dollar. Kubiv plans to invite an International Monetary Fund mission, the Unian news service reported, without giving details.
 

phideaux

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#13
Thanks, EO good work. I got no Thanks button today.
 

GOLD DUCK

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#14
QWAK,IMF --- the guys who see you drounding and throw you a NUSE and tell you to put your head in it :hahaha: so they can pull you in and eat you.:ahhhhh::eating:

the DUCK :s9:
 

EO 11110

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#15
Russia gov is a foe? when they don't even control their own central bank?

batman needs a joker, right?

http://www.themoscowtimes.com/opinion/article/central-banks-war-for-independence/494892.html

Central Bank officials have recently spoken of the threat of "stagflation" in Russia. But critics quickly pointed out that economists first coined the term to describe unsuccessful attempts by several U.S. administrations to spur economic growth in the 1970s through active monetary policy.

That differs fundamentally from what is happening in Russia today.

Inflation is lower than it has been in recent years and almost at a record low for the entire post-Soviet period.

Unemployment is low and not expected to climb.

In fact, with stagflation resulting from high unemployment, high inflation and low economic growth, only the low growth is a problem, with last year's rate expected to continue for the next several years.

Still, Central Bank officials and economists are deliberately referring to stagflation in the current situation, arguing that only inflation can result from the more active monetary policy that some industrialists and politicians are urging the bank to adopt.

Under different circumstances, the simple and traditional method of easing monetary policy by decreasing the discount rate would lead to increased production. The discount rate is the rate at which banks borrow money from the Central Bank. Obviously, those banks cannot extend credit to businesses at a lower rate than they borrow it themselves, so lowering the discount rate would make more credit available to business.

Some countries — such as the U.S.in the early 2000s — have managed to lower their discount rates without triggering inflation. However, the situation in Russia is aggravated by a weakening ruble, making it all but certain that lowering the discount rate would accelerate inflation and cause a further decline in the purchasing power of ordinary citizens.

(Strictly speaking, this discussion is only a working hypothesis, and it would take more research on the subject than Russian economists are currently doing to prove or disprove its accuracy.)

Raising concerns about stagflation also indicates that the Central Bank is worried that President Vladimir Putin and the State Duma will pressure it on monetary policy.

As is always the case, concentrated political pressure carries greater force than the sum total of widespread sentiment, however significant it is. Collectively, millions of citizens would lose a great deal from the consequences of inflation, although individually their losses would be less noticeable.

However, only a handful of industrialists would profit from lower discount rates, but they have far more political influence than most Russians.

In fact, the same logic applies to the ruble exchange rate.

The public stands to gain the most from a floating exchange rate, but the lobbyists arguing for a fixed or even pre-determined exchange rate carry much more weight.

In both issues, the overriding principle is the need to respect the Central Bank's independence in determining monetary policy.
 

phideaux

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#16
In both issues, the overriding principle is the need to respect the Central Bank's independence in determining monetary policy.
:36_11_6::36_11_6::36_11_6::36_11_6:



Surely they can't be serious. (And don't call me Shirley.)