RWBlog

Anyone with one Franklin bill is now way more rich in Ukraine than few
months ago.

Today I have exchanged 100 USD for exactly 1000 UAH.

With some old priced, and reduced through the crisis - foreigners are
allegedly richer Tickets, food, some services are still charged in
UAH - which means you pay half the same price in USD.

UAH becomes just a piece of paper…
Best time to come over and save on your trips!

My US friend’s comments I absolutely agree:

It is rumored that the 16 billion in IMF loan money has been wasted in
corrupt deals, like selling large quantities of dollars to rich Ukrainians
at below the official exchange rate.
MIG News said the gov’t of Ukraine has lapsed into hyperinflation.
So, it might get worse fast.
On the other hand, the U.S. gov’t is doing more or less the same.  Euros
might be better than dollars.  Maybe Japanese Yen is the best.
It’s hard to guess, because the dollar has been strong on speculation that
all the $US printing will save the U.S. economy, while other countries will
have a worse recession.  That strengthens the dollar since a better economy
means more profits for investments.
But, the U.S. Gov’t has printed Trillions of dollars.  There is more than
50% more dollars of money in circulation than just a few months ago,
globally.  (We can get away with this, more than Ukraine, though…)
The dollar has been dropping against the Euro in recent days and Hryvna
drops even against the dollar. It’s a good think Ukraine is a bread basket
of the FSU, because Ukrainians might not be able to afford to import any
food soon…
The inflation might not be a bad idea in Ukraine, if only those UAH were
used productively to help the economy, instead of wasted on corruption.

More details here:

• Russia & Ukrain: Exchange Rates, and Exchange habits

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