Public upbeat about new currency (09/15/96)

Public upbeat about new currency

by Roman Woronowycz
Kyiv Press Bureau

KYIV - A public opinion poll conducted in Kyiv on September 7 shows that Kyivans have become downright upbeat about the new hryvnia.

The survey, conducted by the Democratic Initiative, a sociological survey organization funded by Freedom House, asked 400 people whether "the introduction of the hryvnia will change the situation in Ukraine." Fifty-eight percent of those questioned responded in the affirmative, 29 percent said "no" and 13 percent stated that it is difficult to say.

This is a drastic change from how respondents answered in September 1995, when only 23 percent felt optimistic about a new Ukrainian currency and 42 percent replied that the hryvnia would not change matters in Ukraine.

The reason for the change of opinion also is striking. A large majority, 69 percent, feel the transformation from karbovanets to hryvnia has proceeded in "an open and honest" manner. Only 13 percent disagreed.

Kyivans said that another factor that makes the introduction of the hryvnia so promising is that it has proceeded in a non-confiscatory manner, that is, no limits or penalties were put on what amount or in what manner the old currency could be exchanged.

When asked if they had suffered financial loss as a result of the monetary reform, only 11 percent answered "yes," while 38 percent said "none." However, a full 40 percent said that price increases in the marketplace prior to the introduction of the hryvnia had cost them.

Finally, Kyivans believe the hryvnia will remain relatively stable. A mere 4 percent believed that the hryvnia would dramatically drop in value against the dollar within a year; 22 percent foresaw no change at all; while the majority, 46 percent, responded that the hryvnia would lose only a small amount of value vis-à-vis the dollar.