Ukrainian Economy Heads For Collapse
After actually strengthening somewhat earlier in the year, the hryvnia have more or less fallen off a cliff in the latest month, losing almost a third of its value. This decline have far more dreadful consequences for Ukraine than the declines in the pound or the Swedish krona has for the U.K. and Sweden, as Ukraine has a lot of foreign currency denominated debt (mostly U.S. dollar and euro), which are rising in value as the hryvnia falls. This creates a vicious circle more similar to the effects of the collapse of the Icelandic krona.
Meanwhile, real economic activity appears to be in a virtual collapse. Industrial production in November fell 15.2% compared to October and 28.6% compared to November 2007.