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 77
- Downloads 0
Essence of the Concept of «Institution» in the Agricultural Sphere
The article is aimed to analyze the integrated vision of the concept of «institution». This, in turn, requires disclosure of the content of the «institution» term in the context of an integrated understanding of this not...
Challenging Issues of Socio-Economic Development of the Regions of Ukraine and Proposals for Addressing them in the Context of the Reform of Decentralization of Power
The publication considers challenging issues concerning the differentiation of socio-economic development of the administrative-territorial entities (national and sub-national), which is one of the most topical issues of...
Comparative Analysis of Methodological Approaches to the Diagnosis of the Corporate Culture and the Prospects for their use in the Machine-Building Industry
The basic approaches to the diagnosis of the corporate culture were analyzed and the main phase of the study reflect the main criteria for an effective methodology for assessing corporate culture.
Models of Planning Balanced Development of Ukrainian Fruit Growing
Fruit growing in Ukraine does not cover the internal demand on fruit products and does not have the sufficient profitability level for extended reproduction. The goal of the article is to show directions of development o...
The Conception of Developing Local Consumer Markets
The article presents the conception of developing local consumer markets, which are formed in the conditions of heterogeneity of trading environment as well as competitive interactions of the market actors, taking into a...