Currency Exchange Rate Formation in Ukraine: Problems and Ways of Optimization




currency, currency policy, currency market, currency regulation, exchange rate regime


The conducted analysis proved the presence of quite diverse trends in the foreign exchange market of Ukraine: the national currency is undervalued, the exchange rate is unstable, a significant burden on the financial system as a whole due to the growth of public debt, a high level of dollarization of the economy. That is, on the one hand, there are destructive processes, including those of a chronic nature. On the other hand, the national currency market quickly and easily picks up new opportunities that come to all spheres of economic life, related to digitization and electronic means of trade.

It was revealed that of the key macroeconomic variables that determine the exchange rate: gross domestic product, government debt, gold and foreign exchange reserves, balance of payments, inflation, it is inflation that has the greatest influence on the exchange rate.

Key macroeconomic parameters determining the state of the foreign exchange market can have a destabilizing effect on the foreign exchange market both at a fixed and at a floating exchange rate. It has been proven that the use of any of these regimes in their "pure" form is particularly risky for the economy. An algorithm for making a decision on softening/increasing course flexibility was proposed.

Author Biographies

Karina Kucheriava, V. N. Karazin Kharkiv National University

PhD in State Administration, Associate Professor, Educational and Scientific Institute "Institute of Public Administration" of V.N. Kharkiv National University, Ukraine

Veronika Kostrjukova, V. N. Karazin Kharkiv National University

Educational and Scientific Institute "Institute of Public Administration" of V.N. Karazin Kharkiv National University, Ukraine


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How to Cite

Kucheriava, K., & Kostrjukova, V. (2024). Currency Exchange Rate Formation in Ukraine: Problems and Ways of Optimization. SSP Modern Economics, State and Public Administration, 3(1), 1–12.