DEVELOPMENT OF THE FOREIGN EXCHANGE MARKET OF UKRAINE: ADVANTAGES AND DISADVANTAGES

Abstract

Annotation. The study of the problems of foreign economic activity of the country has always been the focus of economic science. One of the main components of foreign economic activity is monetary policy in general and the foreign exchange market in particular. Issues of thorough study of positive and negative trends in the development of the foreign exchange market of Ukraine and their impact on the functioning of the country's economy as a whole remain relevant. In the sphere of economic relations of Ukraine, the foreign exchange market, in our opinion, plays an important role, as any foreign investment, regardless of which markets it is associated with, must necessarily pass through the foreign exchange market. The foreign exchange market of Ukraine carries out operations on purchase and sale of non-cash and cash foreign currency, and also bank metals. Also in the foreign exchange market of Ukraine the wide range of operations on tourism, migration of capital, labor is carried out and firms, covers operations on insurance of currency risks, diversification of foreign exchange reserves and transfer of foreign exchange liquidity, various measures of foreign exchange intervention, etc. The presence of a full-fledged foreign exchange market in Ukraine and its effective regulation, in our opinion, is one of the main conditions for the formation of an open market economy in the country with all the necessary means to stimulate business in the foreign economic sphere. We consider the following ways to improve the foreign exchange market of Ukraine: development of a special policy by the NBU, which determines the purpose, timing and volume of foreign exchange interventions for effective regulation of supply and demand in the foreign exchange market; phasing out rules restricting market activities, such as taxes and surcharges on foreign exchange transactions, as well as restrictions on interbank transactions; maximum liberalization of the system of currency regulation and currency control; unifi­cation and simplification of currency legislation, prevention of frequent or special changes; clearly established, simple and clear laws and regulations of currency regulation will increase market transparency and reduce operating costs; promoting the development of the market for risk hedging instruments (currency derivatives) by gradually lifting the ban and controlling the conduct of forward foreign exchange transactions. Keywords : foreign economic activity, foreign exchange market, currency, currency regulation, foreign exchange transactions.