Money, finances and credit

Market mechanisms of hryvnia exchange rate stabilization: accounting and institutional aspects

Economic Annals-XXI

Economic Annals-ХХI: Volume 141, Issue 5-6, Pages: 60-63

Citation information:
Shyshkov, S., & Shyshkova, N. (2014). Market mechanisms of hryvnia exchange rate stabilization: accounting and institutional aspects. Economic Annals-XXI, 5-6, 60-63. https://ea21journal.world/index.php/ea-v141-15/

View Full TextDownload PDF

Stanislav Shyshkov
PhD (Economics),
Director of PJSC «Stock Exchange «Perspektiva»
30 Lenin Str., Dnipropetrоvsk, 49000, Ukraine
S.shishkov@fbp.com.ua

Natalia Shyshkova
PhD (Economics),
Associate Professor,
National Mining University
19 Karl Marx Ave, Dnipropetrоvsk, 49005, Ukraine
Nlshishkova@gmail.com

Market mechanisms of hryvnia exchange rate stabilization: accounting and institutional aspects

Abstract. Introduction. The problem of sharp exchange rate fluctuation of the national currency is considered in the article. The international practice shows that consolidation of the national financial markets may be provided on the basis of such regulated markets. The purpose of the article is to develop approaches to justification of theoretic-methodological bases for solution of the problem of sharp rate fluctuation of the national currency. Results. The factors of negative impact on process of establishment of currency rate are proved. Theoretical justifications for usage of system of counterbalances in the conditions of economy of Ukraine are defined. The need to use derivative financial instruments on the basis of the developed countries experience is analyzed. Institutional and legal registration in the form of transparent and public exchange rules of derivatives turnover is offered, which will not only allow to improve the currency relations in the country, but also will bring financial market to a new level of development. Problems of the accounting of currency derivatives, in particular regarding their balance assessment, are designated. The considerable attention demands coordination of the registration practice with the current regulatory and legal framework, namely with the regulations of the National Bank of Ukraine (NBU). Conclusion. It is defined that financial infrastructure should be the key element of the establishment and functioning of the financial market, which is impossible without a centralized clearing. Conditions for the concentration of such markets and the liquidity of the banking system in general are defined. Thus, the results of the research may be used in perspective development planning of enterprises and organizations, which activity is significantly affected by the change of national currency rate. Furthermore, the proposed steps to the settlement of the problem of sharp fluctuations of the national currency exchange rate may be used for planning of the financial institutions development and accounting of currency derivatives.

Keywords: Exchange Rate; Financial Markets; Exchange Trading; Market Methods of Regulation; Hedging; Accounting Aspects

JEL Classification: E50; F31; O16

References

  1. Bereslavska, O. I. (2008). Instruments of exchange rate adjustment and effectiveness: international experience and domestic practice. In A. I. Danylenko (Ed.). Mechanisms of money and stock markets and their impact on the economy of Ukraine (pp. 196-206). Kyiv: Fenix (in Ukr.).
  2. Bereslavska, O. (2005). Interventions in the currency markets as a tool for exchange rate and monetary policy. Visnyk Natsionalnoho banku Ukrainy (Bulleten of National Bank of Ukraine), 10, 36-40 (in Ukr.).
  3. Burakovskyi, I. V. (2009). The Global Financial Crisis: Lessons for Ukraine and the world. Kharkiv: Folio (in Ukr.).
  4. Bodrova, N. E. (2012). The foreign exchange market of Ukraine: state, problems and prospects. Visnyk SumDU. Seriya 102 Ekonomika (Bulleten of SumSU), 1, 102-114 (in Ukr.).
  5. Zhuravka, F. O. (2008). Monetary policy in a transformational change of economy of Ukraine. Sumy: Dilovi perspektyvy (in Ukr.).
  6. Zhuravka, F. O. (2008). Modern trends in the foreign exchange market of Ukraine. Evropeiskyi vektor ekonomichnoho rozvytku (European Vector of Economic Development), 1(4), 16-21 (in Ukr.).
  7. Kostiuchenko, V. M. (2012). Analysis of the impact of foreign exchange regulation in the post-crisis development of foreign trade in Ukraine. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu (Theory and Methodology of Accounting, Control and Analysis), 2(23), 138-147 (in Ukr.).
  8. Kosmyna, O. M. (2012). Currency intervention as an instrument of exchange rate policy.
    Retrieved from http://www.rusnauka.com/13_EISN_2012/Economics/3_109360.doc.htm (in Ukr.)
  9. Nidzelska, I. (2010). Effect of foreign exchange regulation on the development of the national economy. Finansy Ukrainy (Finance of Ukraine), 2, 83-89 (in Ukr.).
  10. Savchenko, T. G. (2011). Evaluating the effectiveness of the exchange regulation instruments in Ukraine. Aktualni problemy ekonomiky (Actual Problems of Economics), 2, 161-170 (in Ukr.).
  11. Prymostka, L. A. (2001). Financial derivatives: analytical and accounting aspects. Kyiv: KNEU (in Ukr.).
  12. Mandeng, O. (2003). Central Bank Foreign Exchange Market Intervention and Option Contract Specification. IMF Working Paper 135.

Received 11.04.2014

View Full TextDownload PDF
In, , , , ,

More Papers