DOLLARIZATION OF THE FINANCIAL MARKET OF UKRAINE IN THE CONDITIONS OF WAR
Abstract
The article is devoted to the problem of dollarization of the financial market of Ukraine under martial law. The relevance of the study is due to the negative consequences caused by the high level of dollarization for the monetary policy and economy of the country. The purpose of the article is to show the peculiarities of the dollarization of the financial market of Ukraine in the conditions of war and to consider directions for solving this problem. To achieve this goal, the study solved a number of tasks: defined the concept and forms of dollarization, analyzed the state and peculiarities of dollarization in the conditions of war, proposed measures to stabilize the dollarization of the financial market to an acceptable level. The study used general scientific methods of cognition: the method of critical analysis, synthesis, induction and deduction. The study found that dollarization is an economic phenomenon in which the funds of other countries replace the functions of the national currency. The main forms of dollarization are dollarization of payments, real and financial dollarization. Against the background of hryvnia depreciation and the attempts of the population and business to preserve their savings, dollarization of the real market has increased significantly. At the same time, due to the reduced activity of the banking sector, the level of dollarization of the financial market is decreasing. In order to improve the situation in the real market, it is recommended to increase the yield rate in hryvnia on domestic government bonds. The state needs to return to an active foreign exchange policy, and the National Bank of Ukraine – to change business strategies in accordance with wartime and to revise the policy of credit risk recognition, which will allow to respond more quickly to changes in the military, political and economic environment. The practical significance of the study lies in the possibility of applying the results obtained by public authorities to develop measures to stabilize the level of dollarization of the financial market of Ukraine in the context of the Russian-Ukrainian war.
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