INFLUENCE OF FOREIGN EXCHANGE
REGULATION ON ECONOMIC
DEVELOPMENT OF UKRAINE
This article studies influence of foreign exchange regulation on economic development of Ukraine. The study identified characteristics and contradictions of foreign exchange regulation influence on economic development. As well it proved necessity of the foreign exchange regulation system transforming to ensure the economic development of Ukraine.
Development of the country's economy is only possible in conditions of macroeconomic stability, which can be achieved in emerging market countries, including Ukraine, primarily by overcoming a systemic crisis and formation of a new economic relations system. The key objective of economic reforms in Ukraine should be creation of conditions for transition to an economic system that provides optimal GDP growth and high living standards. This is especially important taking into account the rapid decline in living standards of our country.
Among the main factors that hinder economic development of Ukraine are: inflation, steep currency devaluation, rising of debt burden and especially its impact on the budget, depletion of international reserves, outflow of investment capital due to the lack of security guarantees and the high degree of risk, deteriorating of external financing access terms, instability of the banking sector, decrease of prices for exports and structural economic imbalances, which show themselves in the degradation of industrial complex of Ukraine, and dangerously high levels of Ukraine's economic openness. The author notes that Ukraine should make every effort to create favorable conditions for business and stimulate the return of capital to the national economy. Only this would help to prevent economic dependence, protect national interests and preserve the existing resource potential.
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Keywords: foreign exchange regulation, economic development, gross domestic product, exchange rate, devaluation, currency restriction |
MACROECONOMICS
Boryshkevych Olena
PhD,Associate professor, SHEI «Kyiv National Economic University named after Vadym Hetman»
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