UKRAINE'S CURRENCY SECURITY

Abstract

The article reveals the essence of currency security of the state. It is proved that the most objective reflection of the content of this concept is the definition which states that "currency security is a currency system characterised by predictability of dynamics of the national currency exchange rate, balance of the currency market, satisfaction of the needs of the State, economic entities and population in foreign currency". The current state of currency security of Ukraine is studied. It is established that the currency system of Ukraine can be classified as the most unstable. Due to the accumulation of changes in it, its components and the external environment, its ability to adapt is decreasing and instability is increasing. Existing problems and threats to the country's currency security have been identified, in particular low level of confidence in the national currency; prolonged existence of a negative balance of payments or a significant positive balance due to massive inflows of foreign speculative capital; specific structure of foreign trade; "institutional vacuum" in the currency sphere; low efficiency of discount policy methods; unbalanced budget policy; high inflation, which is especially characteristic of the period of full-scale military actions of the Russian Federation against Ukraine; unbalanced currency positions of the subjects of currency relations; accelerated liberalisation of capital flow regulation; miscalculations in the policy of international reserves management; insufficient transparency in the implementation of currency policy; imperfect regulatory and legislative framework. It is determined that it is possible to increase the stability of the monetary system and eliminate the above threats using both monetary and non-monetary instruments. There are proposed directions for improving the implementation of foreign exchange policy, among which the most important are: development of conceptual foundations of foreign exchange policy, diversification of international reserves, predictability of foreign exchange interventions, reduction of the level of dollarisation of the country's economy, transition to inflation targeting, further balancing of the money and commodity markets, and thus reducing inflation, stopping the outflow of capital abroad by creating favourable conditions for repatriation of the exported capital, etc.