Gerasimenko D. O., Tchabanenko J. M., Polyviana O. V.

Oles Honchar Dnipropetrovsk National University


The potential for state economic development is largely determined by viability of foreign relations system. With the expansion of the activities of Ukrainian entities beyond the borders, especially after Ukraine's accession into WTO, trends in international coope­ration of production, the expansion of international trade and expanding international operations in Ukraine, the extremely important question about the growing role of national law in regulation of currency control and licensing foreign economic operations as well as conditions for their further development arises.

Ukrainian banking system, compared with Russia, where it is supposed to set the quota for the participation of banks – nonresidents in banking sector at the level of 20%, is now fully open to the entry of foreign capital, as the share of foreign capital in the Ukrainian banking system is 39,5% at the beginning of 2013 [6]. Therefore, in order to level the negative effects, such as the threat of capital outflow abroad into better economies and losing Ukrainian banking system of its independence there is a need to set the size limit of foreign capital in the banking sector to 25%, to strengthen the selection criteria of foreign institutions in order to prevent market from unreliable and vulnerable intermediaries and prohibit foreign investors to acquire majority stakes or control shares of Ukrainian banks to reduce the risk of capital outflows from the sector [5].

Possible measures of improving monetary policy, based on the experience of modernization monetary systems of European countries are:

– Availability of a flexible (capable for updating) information system for collecting, processing and organizing incoming data on currency transactions, monitoring the received information and preparing analyzes on this basis [6];

– Termination of registration of new currency exchange points and prevention of large separation between supply and demand for services in foreign exchange;

– Implementation of FATF recommendations, including the introduction of «Due Diligence» principle into Ukrainian banking system when dealing with clients, that conduct financial transactions.

One of the primary tasks of modern Ukrainian monetary policy is to prevent the outflow of foreign exchange. Unproductive capital outflows only by parameters that can be evaluated by NBU (fictitious transactions with financial credit documents, fictitious payments for imports, exceeding total payments for imports compared to the value of its volume) within 10 years is more than 30.5 billion U.S. dollars [2]. These objectives can be realized on the basis of spreading the practice of factoring as a guarantee of returning foreign exchange earnings and setting up exacting criteria for enterprises in order to prevent participation in foreign operations «one – day firms» [3].

– Simplification of existing restrictions is a mandatory step as the European Commission demands the potential member countries to open their capital markets by the time of joining the EU. Besides liberalization of capital will help to increase the volume of inflows. Nowadays it can not be said about the possibility of Ukraine to conduct rapid policy of capital movement liberalization, as free international capital flows can lead to high volatility of inflow and outflow without prudent macroeconomic policies [4]. So, it is necessary to conduct the policy of gradual liberalization of foreign exchange market, which will consist of three successive stages: Moderating the rules of capital flow [extending the borders of hryvna application in international payments, increasing in hryvna usage in noncommercial operations);

– More decisive liberalization of currency regulation and control (moderation of implemantation conditions of capital transactions by residents, including – direct invest­ments abroad by encouraging investment of the Ukrainian capital into enterprises, which will be involved in promoting goods of Ukrainian enterprises to Western markets);

– The process of strengthening European integration of Ukraine (including gradual increase of norms on import (export), transfer and reconsignment across the customs border by private customers – residents and nonresidents of both national and foreign currencies) [1].

The main step in reforming existing monetary policy is to create clear and systematic regulatory framework in order to regulate all matters in the area of currency control, with the main regulatory document – the law of Ukraine «About Currency Regulation and Currency Control», which has been only in a draft form but not accepted since 2007.

The list of references:

1. Stepanenko B. I. Internationalization of the banking sector in Ukraine: the price and methods of mergers and acquisitions / B. I. Stepanenko // Economist. – 2010. – № 1. – Р. 12–16.

2. Gal V. M. Bulletin of the National Bank of Ukraine / V. M. Gal. – 2011. – № 1. – 191 p.

3. Shparhalo G. E., Nakonechna N. V. Factoring transactions in Ukraine: Problems and Prospects / G. E. Shparhalo // Commercial Academy of Lviv. – 2009. – 230 p.

4. Spivak I., A. Danilenko Reforming the system of currency regulation: gallop or restraint / I. Spivak // Journal of the National Bank of Ukraine. – 2011. – № 4. – 23 p.

5. Mishchenko V. I., Shapovalov A. V., Kirillov V. V., Vashchenko V. V., Grischuk N. V. Problems of reforming of the banking system of Ukraine in context of European integration: Information – analytical materials / V. Mishchenko // National Bank of Ukraine. Research center. – 2007. – № 3. – 266 p.

6. Hubarova T. I. Financial and institutional problems of currency regulation and currency control in the Russian Federation: monograph / T. I. Hubarova. – M.: Wolters Kluwer, 2010. – 192 p.