THE STRATEGY OF LIBERALIZATION OF EXCHANGE RATE POLICY IN UKRAINE
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 1, Issue 63
Abstract
In accordance with the Association Agreement between Ukraine and the European Union, ratified in 2014, with full entry into force in 2015, a number of key priorities for further changes in the area of currency regulation were identified. Thus, according to Chapter 7, Ukraine, by this Agreement, has undertaken not only to ensure the smooth implementation of transfers and payments in foreign currency, but also to ensure the full liberalization of the movement of capital. Thus, the discussion on the expediency of the liberalization of the foreign exchange market and exchange rate policy has already been exhausted, and this process requires the development of a clear plan of action for the gradual implementation of certain tasks in practice. Taking on its commitments to the EU, Ukraine has practically defined the main priorities of the monetary and exchange rate policy for the future, because, on the basis of these, a liberalization is a non-alternative option, which will accompany the further development of the domestic currency market, which is now the most complete fact. For Ukraine, considering the peculiarities of economic development and the state of the financial system, the liberalization of exchange rate policy, on the one hand, is objectively determined by the process, but on the other hand, it can carry significant threats and risks. In this aspect, the key role is played by the development of an effective mechanism for the implementation of the liberalization process, taking into account the peculiarities inherent in the domestic economic and financial system. According to the concept of a new model of currency regulation, proposed by the National Bank of Ukraine, the process of liberalization of currency regulation (Concept), this process is proposed to consider, through the prism of its specific advantages and risks. The process of liberalization involves the complete abolition of all existing prohibitions and restrictions on the currency market and in the area of currency relations. However, the use of existing restrictions was a response to the aggravation of the financial crisis in the Ukrainian economy. Therefore, the abolition of currency restrictions data without negative consequences for participants in the foreign exchange market is possible only after the transition to sustainable economic growth. It is objectively impossible to carry out a complete liberalization of the exchange rate policy without a constructive change in the economy and the restoration of economic growth.
Authors and Affiliations
O. M. Zhurba
Keywords
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