DETERMINANTS OF THE BALANCE OF THE FOREIGN EXCHANGE MARKET OF UKRAINE
UDC336.74(477)
Yurii OLEYNIKOV,
PhD, Associate Professor of the International Economic relations Department of Kyiv National University of Trade and Economics
Liudmyla SEROVA,
PhD, Associate Professor of the International Economic relations Department of Kyiv National University of Trade and Economics
DETERMINANTS OF THE BALANCE OF THE FOREIGN EXCHANGE MARKET OF UKRAINE
Background.The growth of the openness of the Ukrainian economy strengthens the regulatory function of the foreign exchange market, which is to establish a balance between supply and demand. In this regard, the issues related to the analysis of the state of equilibrium of the foreign exchange market, the identification of changes that occurred in its current situation in the last period are becoming currently important.
The aim is to identify the features of establishing equilibrium in various segments of the foreign exchange market of Ukraine, study trends and the degree of balance of demand and supply in the foreign exchange market of Ukraine, as well as identify the causes of its destabilization.
Materials and methods.Economic-statistical and economic-mathematical methods of analysis in the analysis of trends and structural changes and logical methods of analysis in determining the causative sequences were the methodological basis of the study .
Results.Study on the state of the Ukrainian currency market for the period 2015–2017 indicates a high level of its balance by the end of 2017. Particularly the balance in the cash segment of the foreign exchange market of Ukraine has increased significantly. The main factor influencing the growth of the balance of the cash market was the devaluation of the hryvnia against the US dollar and the euro.
Conclusion.Taking into account the fact that the reduction of the hryvnia exchange rate is not the main instrument for establishing equilibrium in the non-cash foreign exchange market, one can conclude that the subsequent policy of devaluation of the official exchange rate of hryvnia by the National Bank of Ukraine will lose its effectiveness and will not to help stabilize the Ukrainian currency market.
Keywords:foreign exchange market, official exchange rate, interbank exchange rate, foreign exchange market trends, balance of foreign currency offer and demand, foreign exchange transactions, real effective exchange rate index.
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Yurii OLEYNIKOV,
PhD, Associate Professor of the International Economic relations Department of Kyiv National University of Trade and Economics
Liudmyla SEROVA,
PhD, Associate Professor of the International Economic relations Department of Kyiv National University of Trade and Economics
DETERMINANTS OF THE BALANCE OF THE FOREIGN EXCHANGE MARKET OF UKRAINE
Background.The growth of the openness of the Ukrainian economy strengthens the regulatory function of the foreign exchange market, which is to establish a balance between supply and demand. In this regard, the issues related to the analysis of the state of equilibrium of the foreign exchange market, the identification of changes that occurred in its current situation in the last period are becoming currently important.
The aim is to identify the features of establishing equilibrium in various segments of the foreign exchange market of Ukraine, study trends and the degree of balance of demand and supply in the foreign exchange market of Ukraine, as well as identify the causes of its destabilization.
Materials and methods.Economic-statistical and economic-mathematical methods of analysis in the analysis of trends and structural changes and logical methods of analysis in determining the causative sequences were the methodological basis of the study .
Results.Study on the state of the Ukrainian currency market for the period 2015–2017 indicates a high level of its balance by the end of 2017. Particularly the balance in the cash segment of the foreign exchange market of Ukraine has increased significantly. The main factor influencing the growth of the balance of the cash market was the devaluation of the hryvnia against the US dollar and the euro.
Conclusion.Taking into account the fact that the reduction of the hryvnia exchange rate is not the main instrument for establishing equilibrium in the non-cash foreign exchange market, one can conclude that the subsequent policy of devaluation of the official exchange rate of hryvnia by the National Bank of Ukraine will lose its effectiveness and will not to help stabilize the Ukrainian currency market.
Keywords:foreign exchange market, official exchange rate, interbank exchange rate, foreign exchange market trends, balance of foreign currency offer and demand, foreign exchange transactions, real effective exchange rate index.
FREE FULL TEXT (PDF)