Analysis on the foreign exchange market of Ukraine under martial law.

Authors

  • Olena Oskoma SHEI «Pryazovskyi State Technical University», Dnipro, Ukraine, Ukraine https://orcid.org/0000-0002-1429-2070
  • Anastasia Bondarenko SHEI «Pryazovskyi State Technical University», Dnipro, Ukraine, Ukraine

DOI:

https://doi.org/10.31498/2225-6725.40.2024.324714

Keywords:

foreign exchange market of Ukraine;, martial law;, currency deficit;, hryvnia exchange rate;, National Bank of Ukraine;, currency interventions;, regulatory measures;, market stabilization.

Abstract

The article examines the functioning of the foreign exchange market of Ukraine under martial law, in particular, analyzes the challenges that the market faced after the start of a full-scale war. In particular, the consequences of a decrease in export revenues due to restrictions on the transportation of goods and a significant decrease in foreign exchange inflows to the country's reserves are considered.

One of the main problems was a sharp drop in the hryvnia exchange rate due to a shortage of foreign exchange and high demand for imported goods, which exacerbated the economic situation. The National Bank of Ukraine (NBU) responded to these challenges with currency interventions and restrictions on foreign exchange transactions to stabilize the situation, which included restrictions on transfers, withdrawal of currency from deposits, and restrictions on foreign exchange transactions for companies. However, these measures led to an increase in demand for cash currency and an increase in its exchange rate differences in Ukraine and abroad.

The article also highlights behavioral changes in the population and business during the war, in particular, the increase in demand for foreign currency and remittances abroad. The effectiveness of the NBU's measures is assessed and recommendations are offered for stabilizing the foreign exchange market during and after the war.

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Published

2024-11-28

How to Cite

Oskoma, O., & Bondarenko, A. (2024). Analysis on the foreign exchange market of Ukraine under martial law . REPORTER OF THE PRIAZOVSKYI STATE TECHNICAL UNIVERSITY Section: Economic Sciences, 1(40), 44–54. https://doi.org/10.31498/2225-6725.40.2024.324714

Issue

Vol. 1 No. 40 (2024): REPORTER OF THE PSTU. Section: Economic sciences

Section

Статті

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