State regulation of the national currency exchange rate by gold and foreign currency reserve management

Abstract

Status of the national currency of Ukraine exchange rate has been characterized as unstable in recent years. Herewith, the Government has not implemented decisive measures on its stabilization, as a rule, underestimating the importance of the Hryvnia exchange rate stability for the successful economic growth in terms of socio-economic transformations. It should also be noted that in modern conditions among scientific and methodical approaches to the State exchange rate formation mechanisms some uncertainty regarding basic and additional tools for such regulatory activities allocation is still persist. The problem relevance is exacerbated by the lack of effective policy (coordination between the NBU and the Government actions) regarding the national currency stabilization as an indispensable prerequisite for an effective macroeconomic development. These circumstances determine the importance of factors influencing the national currency exchange rate and its regulation tools research, as well as new organizational and economic mechanisms for the national currency exchange rate in Ukraine stabilization identification. In the emerging market economy conditions formation of the efficient State currency exchange-rate regulation system provides an opportunity not only to stabilize its exchange rate in different socio-economic conditions, but to create the basis for improvement the country economic development as a whole. Given this, the issue of effective tools for the national currency exchange-rate regulation by the state determination is of theoretical, practical and methodological significance. This emphasizes the relevance of further scientific-methodological and practical principles in-depth development for the national currency exchange-rate regulation. Works of domestic economists such as I. Britchenko, G. Veriga, V. Heyets, S. Goncharenko, M. Dyba, S. Ash, S. Yegoricheva, N. Zhmurko, F. Zhuravka, D. Kovalenko, A. Kovalchuk, Y. Kozak, D. Lukianenko, O. Lupin, O. Lyubun, Y. Makogon, O. Maslova, A. Moroz, A. Nikitin, S. Nikolenko, M. Pukhovkina,M. Savluk, T. Chernyavskaya, A. Shchetinin, etc. are devoted to the coverage of theoretical approaches of the national currency exchange-rate regulation process development and improvement. Among foreign economy experts dealing with the exchange rate formation Mundell Robert, D. Piskulov, P. Samuelsson, A. Sosnov, J. Williamson, A. Harberger, I. Shishkin, S. Shcherbakov and others should be emphasized. However, a number of the exchange-rate regulation issues in the national economy of Ukraine remain unresolved both in theoretical and practical aspects. In scientific literature insufficient attention is paid to the exchange rate influencing factors; state tools for the exchange rate regulation development, as well as effective methods that will have an impact on the national currency exchange rate stabilization require more in-depth study. Herewith, it should be borne in mind that economic environment is constantly changing and poses new challenges to the state leadership, which are related to both the exchange rate regulation and its impact on the country socio-economic development. The Monograph theoretical and methodological basis are scientific, general scientific and special research methods, namely: dialectical cognitive method – for the research object and subject detailed elaboration; induction and deduction – for the exchange rate theoretical concepts essence determination; historical method – for theoretical aspects of gold and foreign currency reserves in Ukraine formation determination; economic-mathematical and statistical methods – for gold and foreign currency reserves modern level and the national currency exchange rate determination; modeling, analysis and synthesis methods – in the process of interrelation between the exchange rate and factors affecting it determination. The Monograph informational background are scientific works of domestic and foreign scientists on the issues of the national currency exchange rate regulation, legislative and normative acts regulating the currency exchange controls by the State, the National Bank of Ukraine, Ministry of Finance of Ukraine and informational resources of the Internet. All data was processed through modern information technologies application.