Ukrainian Currency Crashing, Short-Term Bonds Spiking.

The trouble in Ukraine is not limited to rambunctious protests. The Ukrainian Hyrvnia tumbled a vicious 6.8% in value against the dollar today alone. This is leaves a record 9.8 UA Hyrvnia to 1 US Dollar, which is the worst exchange rate seen since 2009. I sense possible capital controls in the near future. Or maybe I’m just paranoid.

UAUS

Russian Finance Minister Sergei Storchak made an announcement earlier today in which he staked a high probability of default on Ukrainian debt. This may be partly to blame for a sudden collapse in Ukrainian 3-month bond prices.

 

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