The member states of the European Union have agreed to mobilize the fifth tranche of military assistance in the amount of EUR 500 million in support of the Armed Forces of Ukraine, said head of EU diplomacy Josep Borrell.
“Participated at Ministerial Ukraine Defence Contact Group meeting. EU Member States agreed to mobilise 5th tranche of military assistance of EUR 500 million to further support Ukraine‘s Armed Forces. EU remains focused & steadfast in its support for Ukraine, together w partners,” Borrell said on Twitter Wednesday evening.
Ukrainian agrarians need urgent support in replenishing working capital, prolonging loans and settling relations with retail chains, because due to the enormous debt to processing enterprises, agricultural producers cannot purchase raw materials and grain from farmers.
A corresponding appeal to Prime Minister Denys Shmyhal with a proposal to hold a joint meeting to find solutions to prevent negative trends in the grain market was sent on July 20 by members of the agro-industrial complex entrepreneurs’ committee at the Chamber of Commerce and Industry (CCI) of Ukraine, according to the website of the organization.
“It has never been as difficult as it is today for farmers. The situation needs state intervention due to a number of problems: there are ultra-low purchase prices, lack of storage facilities, slow logistics, retail debt,” the Chamber of Commerce and Industry quotes its member, first vice- President of the Association of Farmers Viktor Sheremet.
According to the Chamber of Commerce and Industry, due to the blocking of Ukrainian maritime logistics, hostilities, higher fuel prices, shortage of working capital and lower prices for agricultural raw materials, a significant reduction in winter crops for a new crop is expected.
“Probably, the current crop of corn will remain under the snow,” the organization stressed in the appeal.
In addition, this year a serious challenge for farmers will be the purchase of seeds, fertilizers, fuel, the preservation and export of grain, a number of enterprises and farms are expected to go bankrupt due to the loss of access to export products and the challenges facing the agricultural sector of Ukraine.
“Given the threats that complicate the situation on the market, following the results of the discussion of industry problems, the meeting participants decided to appeal to the Prime Minister of Ukraine Denys Shmygal with a request to hold a joint meeting with interested ministries and departments, business representatives, industry associations, donor organizations to consolidate efforts to search for effective solutions to ensure the organization of the harvesting campaign, storage of grain, autumn sowing and activation of exports,” the Chamber of Commerce and Industry concluded.
From 09:00 on July 21, 2022, the National Bank of Ukraine adjusted the official exchange rate of the hryvnia against the US dollar by 25% – from UAH 29.2549/$1 to UAH 36.5686/$1, taking into account changes in the fundamental characteristics of the Ukrainian economy during the war and strengthening of the US dollar against other currencies, according to a message on the NBU website.
“Such a step will increase the competitiveness of Ukrainian producers, bring together the exchange rate conditions for different business groups and the population and maintain the stability of the economy in a war,” the National Bank said.
He stressed that the official exchange rate of the hryvnia against the US dollar continues to be fixed.
“With the high uncertainty caused by the war, a fixed official exchange rate against the US dollar is the main anchor for stabilizing expectations and a key means of achieving the NBU’s priority goals. They are to ensure price and financial stability, which is an important condition for economic recovery,” the regulator explains its position.
Central bank official rates of banking metals as of July 21
One troy ounce=31.10 grams
National bank of Ukraine’s official rates as of 21/07/22
Source: National Bank of Ukraine
More and more investors are pessimistic about the prospects for the global economy and corporate profits, according to the results of a monthly survey of fund managers conducted by Bank of America Corp. (BofA).
According to the results of the July survey, the proportion of respondents who expect the economy to weaken in the next 12 months reached a record 79%, an increase of 6 percentage points (p.p.). The share of investors expecting corporate earnings to worsen over the next 12 months rose by 7 percentage points, also reaching 79%.
Stagflation in the global economy is expected by a record 90% of respondents compared to 83% a month earlier.
The survey, which included 259 investors managing $722 billion in assets, was conducted by BofA last week.
Investors have reduced exposure to risky assets to lows not seen even during the global financial crisis, “completely capitulating” in the face of a bleak economic outlook, BofA said.
The share of stocks in investment portfolios this month fell to the lowest since the collapse of investment bank Lehman Brothers in 2008, the share of cash balances reached 6.1%, the highest since October 2001.
Among the biggest risks, fund managers point to high inflation, a global recession, and a hawkish central bank.
At the same time, the proportion of respondents who expect inflation to slow down next year has reached its highest level since the global financial crisis.
BofA has been conducting surveys of fund managers since 1994.
