FOREIGN EXCHANGE POLICY AND ITS IMPACT ON THE DEVELOPMENT OF THE CORPORATE SECTOR OF UKRAINIAN ECONOMY

Abstract

The state's foreign exchange policy has been studied, in particular, such its components as exchange rate policy and foreign exchange restrictions; the impact of its changes on the activities of the corporate sector of the Ukrainian economy has been determined. It has been concluded that the transformation of the foreign exchange policy of the last decade, namely foreign exchange liberalization, which is not aligned with other objectives of the country's economic development, has become a catalyst for the formation of a speculative financial model in Ukraine, since it contributed to the saturation of the financial market with speculative capital, including that of non-residents, maximizing their profits with the simultaneous possibility of easy capital withdrawal from Ukraine.

It has been proven that exchange rate fluctuations affect all economic entities, and their intensity depends on the transmission channel. In particular, enterprises engaged in foreign economic activity feel the rapid and direct impact of exchange rate changes, but domestically oriented enterprises, in turn, feel it due to the intensification of inflationary processes. It is concluded that amidst exchange rate instability, uncertainty and inconsistency of the National Bank of Ukraine’s policy, the use of unjustified restrictive measures leads to foreign exchange "sterilization" of business, especially export- and import-oriented one, stimulates the emergence of "gray schemes", the growth of the shadow sector in the economy.

It is substantiated that in the absence of objective factors for the revaluation of the national currency, a slow moderate devaluation by establishing a "crawling peg" regime is advisable, rather than the flexible exchange rate formation. This approach seems justified in the context of preventing real revaluation of the hryvnia, reducing losses of international reserves, avoiding such negative consequences as domestic production slowdown associated with channels of reduction in exports and increase in imports, as well as introducing the principles of exchange rate predictability and forecastability.