This was the trigger that turned what up to then had been a reasonably familiar, if concerning, flight to safety into a historically unprecedented dash for cash. Corporates preparing for a potentially extended disruption in revenues began seeking cash reserves en masse, while financial firms uncertain about the value of assets and counterparties began cutting their exposures.
* * * Dear colleagues, I would like to inform you that the Board of the National Bank of Ukraine has decided to raise its key policy rate to 6,5% per annum. The decision is aimed at gradually reducing inflation to the target of 5%, as the Ukrainian and global economies are recovering. How did prices change at the start of 2021?