It Cost Ukraine Government $4 Billion to Get Re-Elected

In the last four weeks of campaigning Ukraine Central Bank spent a quarter of its foreign reserves to temporarily stabilize the currency

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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...

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