DETERMINANTS OF LIMITED COMPETITIVENESS OF THE NATIONAL CURRENCY SYSTEM OF UKRAINE

currency system and its most important factors that lower its capacity to compete internationally. Economic environment is changeable and globalization process sets new challenges to the national monetary systems. In this case it is important

to observe the situation from the point of view of the open system that cooperates with the others on the continuous basis. The author has analyzed each separate factor that may have significant influence on the reduced competitiveness of the

national system.

At the same time it is of key importance to understand that different limitations

and controls, set by government complicate administration activity of the business. The author mentioned existing foreign exchange controls of the national currency system of Ukraine.

From the other hand public’s distrust to the specific elements of the currency

system also lowers its capacity to compete. The most descriptive in this case are banking system and hryvnia itself. Public tries to withdraw its money from the banking system and exchanges hryvnias to the world reserve currencies during the economic crises.

Political field in Ukraine is also specific. Government may choose wrong targets in its monetary policy that may have destructive results that rise currency risks and avert investment activity. At the same time Ukrainian economy has its structural problems that also raise the currency risks.

Nevertheless the situation has not only negative forecasts. Core indicators