Evaluation of Sufficiency of the International Reserves of Ukraine and Possible Sources for Replenishment
Journal Title: Бізнес Інформ - Year 2015, Vol 7, Issue 0
Abstract
The article is aimed to evaluate the sufficiency level of the international reserves of Ukraine, analyze the main ways of preserving the reserve assets as well as identifying possible sources for replenishment during the crisis period. The authors suggested to differentiate between the concepts of «sufficiency» of international reserves and their «optimality». The article analyzes the main advantages and disadvantages of current approaches to substantiation of sufficiency and optimality of reserve assets. The level of sufficiency of the international reserves of Ukraine has been calculated, using traditional criteria (covering the import, short-term debt, money supply) together with the combined criterion of the IMF. It has been concluded that at the end of the first quarter of 2015 reserve assets were not sufficient for all the considered criteria, aside from the monetary coverage criterion, not so much because of their growth, as because of reduction in the money supply in US-dollar terms owing to the devaluation of hryvnia. To locate possible sources for replenishment of the international reserves, the data of balance-of-payments of Ukraine as well as dynamics of reserve assets of several countries with transition economies in the period of the global crisis have been analyzed. It has been concluded that, at the present moment, the only source of external foreign currency resources is financial assistance, which is provided in terms of the program of cooperation with the IMF. To save the reserves, relationships with the countries-importers of Ukrainian goods need to be expanded as well as swap agreements should be concluded. Among the domestic sources of foreign currency resources, the currency and deposits of the non-bank economy sector can be considered as well, though the use of this resource is complicated by the mistrust in the Government and the banking system, significant devaluation and inflationary risks.
Authors and Affiliations
Mykhaylo Makarenko, Daria Gordieieva
Keywords
Related Articles
- EP ID EP89793
- DOI -
- Views 104
- Downloads 0
Sustainable Development of Oil and Gas Complex and Financial and Organizational Arrangements for its Provision
The problems associated with the sustainable development of energy (oil and gas) companies in the context of their investment needs the development of energy-saving and environmental technologies. Substantiated financial...
Personnel Motivation: Essence and Modern Problems
The goal of the article lies in the study of the essence of labour motivation and establishment of differences between stimulation and motivation. While analysing the "motivation" notion the article shows that internal w...
Studying the Foreign Experience of Evaluating Intellectual Potential of Organizations
The use of intellectual capital (IC) is considered in developed countries as a strategic management tool for achievement of the organizations' success in innovative activities. The article is aimed at studying the foreig...
The Cluster Approach to the Development of Educational Tourism in Ukraine
The objective of the research is substantiation of use of the cluster approach to the development of educational tourism in Ukraine, aimed at further developing practical measures for its implementation. Views on the cat...
Using the Periodic Quantity-Value Model to Forecast the Value of Financial Market Tools
The article is aimed at improving the theoretical and methodological approaches to forecasting the value of financial market tools, making use of the developed periodic quantity-value model, which is a reflection of the...