In this post I will present some insights about the Ukrainian economy from the latest macroeconomic research reports prepared by the Ukrainian investment banks and presented to general public.
Analysts from SP Advisors did a good job analyzing current situation in the Ukrainian economy and giving forecasts for 2015. However, their official UAH/USD exchange rate forecast is overly optimistic. They forecast on average 17.50 UAH/USD rate, while the National Bank of Ukraine already set a 27.76 UAH/USD rate as of March 2, 2015. Given current and forecast level of Ukraine’s foreign currency reserves, ongoing war and declining export volumes, we should expect further depreciation of the Ukrainian currency.