Misiats N. Formation and development of the foreign currency exchange regulation mechanism in Ukraine

The aim of the dissertation is to substantiate theoretical and methodological principles, develop methodological approaches and practical recommendations which will facilitate the formation and development of the foreign currency exchange regulation mechanism in Ukraine. Based on the study results the foreign currency exchange regulation essence, its principles and functions have been specified; theoretical approaches to definitions of such categories as “exchange rate policy”, “foreign currency exchange regulation”, “foreign currency exchange mechanism” have been summarized; specifics of the foreign currency exchange instruments application has been analyzed and their classification has been organized. Methodological approaches to the foreign currency exchange mechanism formation have been developed, including by demonstrating the place and role of the currency exchange regulation within the structure of such mechanism for the countries with transitional market relations. The influence of the National Bank of Ukraine regulatory measures on the interbank foreign exchange market has been determined and its development trends during the years 2007-2016 have been analyzed. The interbank foreign exchange market operation periodization based on the economic development indicators and level of the household economic activity has been proposed which widens the analysis methodology of the interbank foreign exchange market development in order to prevent the emergence of destructive features in its work. The main directions of the monetary regulation mechanism’s influence on the balance of payments status and financial capital flows have been specified, which gives an opportunity to analyze in more detail the structure and features of the modern financial and economic relations between Ukraine and other countries and determine their further development trends. The peculiarities of how the volumes of international economic export-import operations influence the formation of the foreign currency demand and supply dynamics in terms of the proposed periodization of the foreign exchange market have been determined. The list of factors which reduce the currency regulation mechanism efficiency has been systematized, and, accordingly, a set of measures for its optimization has been defined. The prospects of currency regulation liberalization have been substantiated, including a set of monetary and financial prerequisites that are necessary in order to achieve positive results of the liberalization and minimize the risks associated with it. The sequence of liberalization measures is proposed which in particular contains the ways to define (hight or low) the risk level of the foreign exchange operations performed with the sole purpose to move unproductive capital out of Ukraine. Keywords: foreign currency exchange regulation, foreign currency exchange mechanism, foreign currency exchange instruments, interbank foreign exchange market, foreign currency, exchange rate restrictions, capital inflows and outflows, liberalization.