№ 11/2020

Fìnansi Ukr. 2020 (11): 7–34https://doi.org/10.33763/finukr2020.11.007

MONETARY POLICY

SHAROV Oleksandr ¹

¹SO "Institute for Economics and Forecasting of the NAS of Ukraine"
OrcID ID : https://orcid.org/0000-0001-8460-9996

Problems of monetary sovereignty formation of Ukraine

In this article the author focuses his attention on the problem of Ukraine’s monetary sovereignty. The article provides the analysis of the formation of the monetary sovereignty of Ukraine and threats to its existence, that arise in modern circumstances. It means that they are linked to economic impact of lockdown measures introduced by governments over the world (incl. Ukraine) to protect against the spread of the Covid-19 pandemic. The author analyzes the formation of Ukraine’s monetary sovereignty in the context of individual elements (legal registration, discretionary emission rights, status of the only legal tender, convertibility level, exchange rate regime, availability of gold and foreign exchange reserves, participation in monetary integration, status and type of monetary targeting, state monopoly on the organization of domestic money circulation and the international status of the national currency). This analysis reveals the current state of Ukraine’s monetary sovereignty. Besides, the main threats to monetary sovereignty are identified and, on the basis of this, an expert assessment of the degree of risk of these threats is given. In particular, the author emphasizes the need for more attention from the National Bank to risks of the violation of the state monetary monopoly in connection with the use of foreign currency (dollarization) and so called cryptocurrencies. The latter is especially important for Ukraine because the country is World’s No. 1 as for the use of cryptocurrency, and it makes necessary to establish proper regulation rules for such transactions as well as the creation of its own CBGC.

Keywords:monetary sovereignty, monetary policy, dollarization, cryptocurrency. International Monetary Fund, COVID-19

JEL: E42, E52, E58

Sharov O. . Problems of monetary sovereignty formation of Ukraine / O. Sharov // Фінанси України. - 2020. - № 11. - C. 7-34.

Article original in Ukrainian (pp. 7 - 34)

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