Ukrainian hryvnia to average at UAH 8.30-8.40/$1 in 2012, as budgeted - Azarov
KYIV. Jan 21 (Interfax) - Currency stability in Ukraine in 2013 will be maintained, and the average annual hryvnia exchange rate will be as projected in the budget - around UAH 8.30-8.40/$1, Prime Minister Mykola Azarov told reporters.
He said that during the year there could of course be slight fluctuations of the exchange rate, depending on the amount of foreign currency coming to the country and the economic situation.
"Anyway, the exchange rate will be balanced, and no one will allow currency speculators to influence it," Azarov said, adding that it is not planned to considerably reduce currency reserves.
He said that in 2012 the average wage in the country reached $400 - the level it was in 2007, after which it plunged due to the hryvnia devaluation under former Prime Minister Yulia Tymoshenko's government.
Azarov also said that Ukraine would like to resume financial cooperation with the International Monetary Fund (IMF), although such financing is not crucial for the country, as the payment of $9 billion in 2013 is envisaged in the budget.
The premier said that Ukraine would protect its positions in talks with the IMF, opposing the mass increase in gas tariffs for households.
The prime minister said that the cabinet is ready to apply a differentiated increase of utility tariffs for households, depending on the level of incomes of consumers, to reach a compromise with the IMF.
"We've said that we're ready to set tariffs equaling the cash cost of the goods for those who have European-level wages and income," Azarov said.
As reported, the average annual hryvnia exchange rate to the U.S. dollar in 2013 will be UAH 8.30/$1, and as of late 2013 it will stand at UAH 8.40/$1, according to the draft law on the national budget for 2013. The government expects that the average annual hryvnia exchange rate to the euro will be UAH 10.40, which is in line with the dollar/euro exchange rate forecast for 2013 at $1.25/EUR 1.
A mission of the International Monetary Fund (IMF) will start its work in Ukraine on January 29 to discuss a new Stand-By Arrangement. Vice Premier Serhiy Arbuzov said that Ukraine is interested in taking a SDR 10 billion loan (around $15 billion).
The previous Stand-By Arrangement worth SDR 10 billion formally finished in December 2012. It was opened in late July 2010, although the country managed to receive only two tranches worth SDR 2.25 billion. Since the spring of 2011, the arrangement has been frozen at the stage of the second revision: Ukraine tried persuade the IMF to exclude the issue of subsidizing of natural gas prices for households until it completed its gas talks with Russia, but failed.
At present, the gas tariffs for households are differentiated depending on consumption volumes.