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The dollar exchange rate depends, among other things, on the APU

During a war in a country, military policy becomes part of economic or monetary policy, Milovanov says.

The situation at the front affects, among other things, the dollar exchange rate / REUTERS

During wars in the country military policy becomes part of economic or monetary policy.

This opinion was expressed by Adviser to the Head of the Office of the President of Ukraine, President of the Kyiv School of Economics Tymofiy Mylovanov on the air of the news telethon August 3rd.

“A lot depends on the Armed Forces of Ukraine in the country, because good news from the front, they calm the dollar exchange rate as well. If there is positive news at the fronts, then the exchange rate will actually increase. the course will strengthen. If there is no such news, it will weaken,” Milovanov explained.

The President of the Kyiv School of Economics noted that the most important thing for business and the economy is to survive this winter and adapt over this period. For businesses and companies, it is important not to lose an order, but for people, the most important thing is not to lose a job.

“So that companies have someone to sell products to and have someone to pay for it. Every business and every industry must be prepared for the fact that the war can last for another months and decide how they will plan, survive and work. They must think about what demand, new opportunities and new orders for business will come precisely from the state order related to the war,” Milovanov stressed.

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He noted that the rise in prices for all groups of goods is a practical reality, because during the war, prices always rise in all countries.

“There is nothing new here. It is this reality, we do not like it, so this war needs to be won. But so that it does not go to the level of hyperinflation. That is, most countries can save themselves from this if they pursue a cautious economic policy,” he said. Milovanov.

He also noted that for the economic situation, the most dangerous combination of a damaged economy, panic and money printing.

“Now we need to work very carefully so that this does not turn into a crisis. We know what to do, we went through this in 2014-2016, there are certain economic recipes and I am sure that they will be made. More and more international assistance will also gradually arrive All this should calm the markets,” Milovanov stressed.

As UNIAN reported, consumer inflation in Ukraine in June in annual terms compared to June 2021 amounted to 21.5%.

By the end of 2022, the National Bank predicts inflation of more than 30%.

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