№ 11/2016

Fìnansi Ukr. 2016 (11): 33–0

MONETARY POLICY

DZIUBLIUK Oleksandr ¹

¹Ternopil National Economic University
OrcID ID : https://orcid.org/0000-0002-4967-823X

Foreign exchange policy as a macroeconomic stabilization factor

Foreign exchange policy should be seen as a key lever of influence on the dynamics of economic processes, and thus the choice of the right policy strategy is a prerequisite for the effectiveness not only of foreign economic relations but also the banking sector, the monetary system and the entire national economy. The article analyzes the features of the implementation of foreign exchange policy in Ukraine during the development of the crisis in the financial market, which was accompanied by the official refusal of the central bank to support the exchange rate and led to increased devaluation pressure on the national currency. The research includes consideration of the negative effects of the hryvnia devaluation in terms of disruption of foreign trade, undermining confidence in the national currency, growth of inflation, macroeconomic instability and significant losses of the banking system. The article evaluates the effectiveness of administrative measures of the National Bank’s foreign exchange policy and identifies their focus mainly on artificial limit demand for foreign exchange and promotion of “black” currency market. The analysis emphasizes insufficient efficacy of periodic central bank currency intervention on the foreign exchange market. It is proved that the priority of exchange policy should be the choice of optimal exchange rate regime, which is proposed in the form of the exchange rate corridor whose limits serve as a signal for market participants as the nominal anchor of currency policy with a clear commitment by the central bank on its implementation. This regime mostly fits the national interest and features of an open economy of our country and contributes to the normalization of the banking sector and macroeconomic stabilization.

Keywords:foreign exchange policy, exchange rate, the central bank, devaluation, interest rate, inflation, the banking sector, national currency.

JEL: E42, E50, E59, F31.

DZIUBLIUK O. . Foreign exchange policy as a macroeconomic stabilization factor / O. . DZIUBLIUK // Фінанси України. - 2016. - № 11. - C. 33-0.

Article original in Ukrainian (pp. 33 - 51)

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