The Effects of the Exchange Rate Policy of NBU for Socio-economic Development

Abstract

The article discusses some aspects of the monetary policy and exchange rate regime, the Activities of the National Bank of Ukraine on ensuring the stability of hryvnia in the conditions of the floating exchange rate and inflation targeting. The analysis addresses economic, financial, financial, and legal consequences of insufficient attention to ensuring the stability of hryvnia. It is noted that the activity of the NBU to ensure the stability of the national currency of Ukraine cannot be considered satisfactory under the regime of the floating exchange rate and inflation targeting. The author offers a number of recommendations for improving the exchange rate policy of the NBU. It is advisable to form a floating rate controlled by the NBU, which would take into account the characteristics and needs of the national economy and the requirements of Ukrainian society. It is necessary to ensure the stability of the national currency in order to ensure the investment climate, good salary, and prevent the devaluation of savings of citizens.

Keywords

• exchange rates
• monetary policy
• savings
• devaluation
• the national bank of ukraine
• exchange rate regime