Cashless Society and de-Dollarization in Ukraine. What is Missing from Present Discussions?

Škreb, Marko; Khvedchuk, Kostiantyn

doi:10.26531/vnbu2016.238.006

Visn. Nat. Bank Ukr.

2016

DOI: 10.26531/vnbu2016.238.006

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Cashless Society and de-Dollarization in Ukraine. What is Missing from Present Discussions?

Marko Škreb¹,

Kostiantyn Khvedchuk²

Abstract: The National Bank of Ukraine stepped on the track to a cashless economy aiming at reforming the financial system, improvement of the transmission mechanism, and reduction of the underground economy and corruption. A substantial part of money in the Ukrainian economy is estimated to be foreign cash in circulation. This article underlines the importance of considering it while conducting monetary policy. Negative consequences of high dollarization and proliferation of cash are emphasized. We discuss measures tha… Show more

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Cited by 2 publications

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Effect of financial access on cashless economy: The case of Ukraine

Bublyk

Shapoval

Shpanel-Yukhta

et al. 2023

Banks and Bank Systems

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The pandemic and wartime in Ukraine confirmed the importance of cashless payments for financial stability. The purpose of the paper is to examine the effect of technological infrastructure and financial access factors on cashless economy development. The impact of the infrastructure factor is assessed in case of Ukraine, using NBU’s data on payment infrastructure during 2001–2022. The hypothesis of the boosting effect of financial access towards a cashless economy has been tested using the method of correlation between M0/M3 and different indicators of financial access (usage of essential technologies, financial services) based on data of World Bank, IMF, and Triple-A in 2021. The study’s results show that globally there is an almost linear relationship between the number of open financial accounts and the increase in the level of cashless (0.954). It is also revealed that the rise of the share of the population making electronic payments decreases the share of cash in the economy. It is determined that the spread of the crypto-assets has a significant impact on the reduction of cash in the economy (an increase in the share of the population operating with cryptocurrencies by 1% reduces the share of cash by 0.5%). Regarding regulatory policies, it is proposed to stimulate the coverage of the population with open financial accounts, making mandatory payments with electronic payment systems and developing their infrastructure.

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Effect of financial access on cashless economy: The case of Ukraine

Bublyk

Shapoval

Shpanel-Yukhta

et al. 2023

Banks and Bank Systems

View full text Add to dashboard Cite

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Factors of Ukrainians’ Confidence in the National and Foreign Currencies: Aspect of Behaviour

Dmytriyeva¹

2018

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Introduction. Customers of financial services react to economical conjuncture by behaviour, which can indicate the confidence both in own national currency and bank system in whole. The factor of hryvnia domination in national economy that is an official national currency remains relevant. On the one hand, when volume of the foreign currency rises sharply in the market or savings, then it means not only failure of trust to hryvnia but also the hidden economy dollarization. It causes the plunge of hryvnia value, inflation, and other crisis symptoms. On the other hand, behaviour of financial services customers can be not only the response but also the factor that effects the economic development. Purpose. The article aims to analyse factors that form Ukrainian household preferences in choosing type of currency for saving money on the bank accounts; to investigate factors that affect general behaviour of depositors during the period from January 2006 to November 2017. Method (methodology). Dynamic rows comparison in comparable currencies for the analysis of changes in gross domestic product per capita is used in the research. Such indicators as average salary per one full-time employee, foreign currency deposits, dollarization level, regression coefficients are analysed in compared rates of currencies to have relevant results about household behaviour. Graphical method is used to demonstrate the results of analysis. Results. The trend of declining of household deposits in all types of currencies since 2014 has been analysed. Low cost of hryvnia has pushed households to put money on deposits in stable foreign currencies. However, the recession tendencies have been observed even in the volumes of deposits in stable currencies. Changes in income level of the population have become the main course of deposits fluctuations.

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Cashless Society and de-Dollarization in Ukraine. What is Missing from Present Discussions?

Cited by 2 publications

References 10 publications

Effect of financial access on cashless economy: The case of Ukraine

Effect of financial access on cashless economy: The case of Ukraine

Factors of Ukrainians’ Confidence in the National and Foreign Currencies: Aspect of Behaviour

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