The dynamics of cumulative impacts

In particular, as international experience shows, the role of factor 'net foreign assets "varies depending on the exchange rate regime and fluctuations in the balance of payments. In countries with floating exchange rate, this factor is self-contained, since the central bank does not intervene in currency markets and, therefore, no change in its net foreign assets, except for the effects of revaluation. In terms of fixed or managed exchange rate, this factor is not independent, since the central bank has a direct influence on changes in the balance of his article, "Net foreign assets" through currency intervention (buying or selling of foreign currency) in order to regulate the exchange rate. Now the National Bank of Ukraine implements its monetary policy in a monetary regime (monetary and exchange rate regime in Ukraine in the classifier monetary and exchange rate regimes to the IMF in 2008 was defined as the de facto regime fixed to the dollar (de facto dollar peg), and from 2008 city ​​- as a managed floating regime (managed float)) Binding of hryvnia to U.S. dollar. In terms of openness of the domestic economy and large inflows of foreign capital that resulted in the need for in September 2008, the central bank currency intervention to buy U.S. dollar, which affected the growth of liquidity in the banking system. Category: Liquidity of the banking system of Ukraine | Tags: Dynamics