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How 2018 Currency Champ Is Dodging the Emerging-Market Rout

  • Ukrainian central banker lauds lack of ‘hot-money’ volatility
  • Hryvnia benifiting from one of region’s highest interest rates
Hryvnia Currency Banknotes At The Ukrainian Central Bank
Photographer: Vincent Mundy/Bloomberg
Updated on

On the surface, Ukraine doesn’t look much like a country with a world-beating currency. An international bailout has been frozen for more than a year, its finance minister was fired last week and a Kremlin-backed war continues to simmer in its eastern climes.

But almost halfway through 2018, the hryvnia is the No. 1 performer against the dollar, despite other developing nations succumbing to a rout. For Oleg Churiy, Ukraine’s deputy central bank governor in charge of foreign-exchange policy, the key lies in avoiding a reliance on short-term capital flows to finance current-account deficits.