The Other Ukrainian Crisis

On Feb. 25, the National Bank of Ukraine tightened the restrictions on the foreign exchange purchase operations of Ukrainian banks. But just hours after the announcement, the bank, likely under government pressure, reversed its decision. On March 11, the International Monetary Fund's board of governors is expected to approve Ukraine's new $17.5 billion aid package. However, worsening disagreements among state officials over the course of the country's monetary policy, as well as corruption scandals involving the national bank and the State Fiscal Service of Ukraine, threaten to limit Kiev's access to much-needed funding from the West, weakening its position in the standoff against Russia.