In the last four weeks of campaigning Ukraine Central Bank spent a quarter of its foreign reserves to temporarily stabilize the currency
This article originally appeared at Zero Hedge
As the world grows used to hearing of reserve depletion among less-developed nations defending their currencies from collapse, we thought the following chart might open a few eyes as to the real driver of attempting to create 'stability' by intervention.
In the run-up to October's parliamentary election in Ukraine, the Hryvnia became oddly stable - signaling to the world that the current government had everything under control and should be re-elected.
Since the re-election, the Ukrainian currency has re-collapsed to record lows.
How did the Ukrainian government 'ensure' re-election via 'stability'?
By blowing almost $4bn (a record 23% of reserves) in one month to maintain the currency's level:
Money well spent we are sure...