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Karbovanets Drops To 100,000 To The U.S. Dollar With AM-Russia-Ruble

October 13, 1994

KIEV, Ukraine (AP) _ The Ukrainian currency plunged to a new low Thursday in a continuing nosedive that may complicate new efforts to launch free-market reforms.

The karbovanets, which lost 10 percent of its value in street trading to fall to 102,000 to the dollar, is now worth only half its value of Sept. 12.

As part of an economic reform program designed to win International Monetary Fund loans, Ukraine is committed to scrapping its dual exchange rate system by the end of the year. It also hopes to introduce a new, permanent currency, the hryvna, in January.

A National Bank spokesman said the karbovanets’ nosedive was unrelated to the slump in the Russian ruble. Dymtro Rikberg blamed the conservative- dominated parliament for approving large agricultural subsidies that forced the bank to issue tens of millions of dollars worth of new karbovanets.

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