Ukraine: Program Monitoring with Board Involvement-Press Release; Staff Report; and Statement by the Executive Director for Ukraine
IMF Staff Country Reports, December 21, 2022
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- Ukraine: Program Monitoring with Board Involvement-Press Release; Staff Report; and Statement by the Executive Director for Ukraine
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Bibliographic details
- Published: December 21, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400225727.002
Humanitarian and economic impact of the invasion
- Russia’s invasion of Ukraine continues to have a devastating social and economic impact on the country.
- Civilian casualties are mounting.
- Over a third of the population has been displaced.
- Access to basic needs such as electricity, water, and heating are at risk while winter is coming.
Macroeconomic management and fiscal developments
- Macroeconomic management has been exceedingly difficult.
- The fiscal deficit has ballooned to accommodate a large expansion of defense spending.
- Defense spending has been financed by a combination of external support and monetization, with multiple supplementary budgets since the start of the war.
Monetary policy, exchange rate, and financial measures
- The inflation targeting regime was replaced by a hard peg to the US dollar.
- The hard peg is supported by FX controls and a sizeable increase in policy interest rates.
- The exchange rate has come under episodic pressure (and was devalued by 25 percent in July), despite sizable external financing.
Macroeconomic and financial stability, authorities' stance
- Notwithstanding the strains described above, the authorities have largely managed to maintain macroeconomic and financial stability.
- The authorities are committed to take necessary measures to preserve stability.
Content in this bundle
- 1ukrea2022003 - Executive Summary