Evaluation of Sufficiency of the International Reserves of Ukraine and Possible Sources for Replenishment
Journal Title: Бізнес Інформ - Year 2015, Vol 7, Issue 0
Abstract
The article is aimed to evaluate the sufficiency level of the international reserves of Ukraine, analyze the main ways of preserving the reserve assets as well as identifying possible sources for replenishment during the crisis period. The authors suggested to differentiate between the concepts of «sufficiency» of international reserves and their «optimality». The article analyzes the main advantages and disadvantages of current approaches to substantiation of sufficiency and optimality of reserve assets. The level of sufficiency of the international reserves of Ukraine has been calculated, using traditional criteria (covering the import, short-term debt, money supply) together with the combined criterion of the IMF. It has been concluded that at the end of the first quarter of 2015 reserve assets were not sufficient for all the considered criteria, aside from the monetary coverage criterion, not so much because of their growth, as because of reduction in the money supply in US-dollar terms owing to the devaluation of hryvnia. To locate possible sources for replenishment of the international reserves, the data of balance-of-payments of Ukraine as well as dynamics of reserve assets of several countries with transition economies in the period of the global crisis have been analyzed. It has been concluded that, at the present moment, the only source of external foreign currency resources is financial assistance, which is provided in terms of the program of cooperation with the IMF. To save the reserves, relationships with the countries-importers of Ukrainian goods need to be expanded as well as swap agreements should be concluded. Among the domestic sources of foreign currency resources, the currency and deposits of the non-bank economy sector can be considered as well, though the use of this resource is complicated by the mistrust in the Government and the banking system, significant devaluation and inflationary risks.
Authors and Affiliations
Mykhaylo Makarenko, Daria Gordieieva
Keywords
Related Articles
- EP ID EP89792
- DOI -
- Views 123
- Downloads 0
Methodical Going Near Determination of Bases of Providing of Reproduction and Comprehensive Development of Human and Labour Potential
In the article the role of improvement of terms of labour for the increase of efficiency of production and development is reasonable on this basis of human and labour potential.
Economic Potential of Enterprises That Function in the Knowledge-based Economy
The goal of the article is the study of relation of economic notions that characterise efficient labour activity of enterprise personnel and approaches to assessment of economic potential of enterprises with consideratio...
Reforming the System of Public Procurements in the Context of the European Integration Processes
The article analyzes reforming the system of public procurements in Ukraine in the context of the European integration processes and provides proposals for further directions of reforming, taking into account successful...
Managing Banking Institution Resources through Optimisation of the Balance Structure
Requirements to the banking system, which should facilitate sustainable economic growth and increase of competitiveness of the economic complex, become higher under the modern conditions. Improvement of organisation of f...
The Conjuncture Estimation of Competitive Edges of Business-Units of Machine-Building Enterprise
In the articles conducted economic researches of positions of enterprise are in an international competition environment. Strategic priorities of development of KHK "AvtoKrAZ" are certain, that able to promote the compet...