MANAGING CAPITAL FLOWS: THE EXPERIENCE OF UKRAINE

Abstract

This article is devoted to finding out the main aspects of the foreign exchange and monetary policy tools use in order to influence the capital flows. It has been determined the place ofUkrainewithin global international capital movement as a net exporter of capital flows and has been appointed that the balance of payments financial account is not opened. It has been identified the foreign exchange measures and restrictions applied in order to control capital inflows and to prevent sudden capital outflows. Also it has been analyzed the inward foreign direct investments’ structure by the types of economic activity and the country-senders. The interrelationships between the capital outflows and the key policy rate dynamics as well as direct foreign investment dynamics ofUkrainehave been examined.

Keywords

• capital flows
• capital controls
• foreign exchange arrangements
• foreign exchange restrictions
• inward and outward foreign direct investments