MOSCOW (Pakistan Point News / Sputnik - 09th December, 2018) The National Bank of Ukraine spent $125 million to uphold the exchange rate of the Ukrainian hryvnia in the first three days after Kiev imposed martial law in response to the Kerch Strait incident, the bank's head, Yakiv Smolii, said Sunday.
On November 26, the Ukrainian parliament supported Ukrainian President Petro Poroshenko's initiative to impose martial law in 10 eastern regions of the country after the Russian coast guard detained three Ukrainian ships that illegally crossed the country's territorial waters in the Kerch Strait.
"Certain frenzy in the first three days after the martial law was imposed was quickly replaced by strengthening of the hryvnia at the end of the week. The National Bank smoothed out fluctuations by Currency interventions. To support the exchange rate, about $125 million was spent from the reserves from November 26 to 30," Smolii told the VoxUkraine outlet.
Russian President Vladimir Putin has said that the Kerch Strati incident was a provocation prepared in advance as a pretext to introduce martial law in Ukraine. Putin said the provocation could be linked to Poroshenko's low approval rating ahead of the presidential campaign set to start in late December.
