Quotes from Danske Bank:
-The UAH peg came under extreme pressure in H2 14 and January as FX reserves shrank to USD6.4bn from USD16bn in January 2014.
-Thus, in early February, the national bank of Ukraine (the NBU) revoked its indicative exchange rate, letting the UAH hit 25.97 against the USD from the previous 16.00.
-The move was inevitable, in our view, as an FX shortage had created a black market for hard currencies. Yet, tight capital controls remain. We expect USDUAH to hit 33.00 in H1 15.
