Depreciation of the Ukrainian hryvnia by 20% against the Moldovan leu will lead to a decrease or at least to containment of food prices in our country, but will hit local producers - Veaceslav Ionita.
According to an analytical commentary by an economic expert, last week the Ukrainian hryvnia depreciated by 20% against the Moldovan leu, which was the third sharp depreciation in the last 20 years. The devaluation of the hryvnia was the decision of the Ukrainian authorities to help Ukrainian companies to promote exports. The depreciation of the hryvnia does not greatly affect inflation in Ukraine, but it greatly helps export-oriented companies. For Moldova, this decision by Ukraine has two direct consequences. The first is the reduction in the cost of food products for Moldovan citizens - about 35% of all food products imported by our country come from Ukraine. In fact, as Veaceslav Ionita assures, the decision of the Ukrainian authorities has a greater impact on the level of inflation in Moldova than the decisions made by our authorities. The second consequence is that cheap products in Ukraine will create big problems for our producers, who even now cannot compete with cheaper Ukrainian products, which will be cheaper by another 20%. Veaceslav Ionita recalled that all devaluations of the hryvnia were aimed at supporting the Ukrainian manufacturer in promoting exports. Each time this meant a flood of Ukrainian products on the Moldovan market and local companies losing competition with Ukrainian products. Each crisis in Ukraine meant benefits for exporters and increased exports. And in Moldova, every crisis meant a loss of market share by local producers. // 25.07.2022 — InfoMarket.
