INSTITUTIONALIZATION OF MECHANISMS OF THE CURRENCY MARKET OF THE NATIONAL ECONOMY

The article defines the main features of the foreign exchange market, as one of the largest and most important segments of the global financial system, namely: global scale, range of participants, round-the-clock operation of the market, factors affecting the foreign exchange market, international and domestic segments of the foreign exchange market, regulatory supervision and legal framework, intermediary assistance. It has been proven that the mechanisms of the foreign exchange market ensure its stability, liquidity and the possibility of international settlements. It is shown that in the conditions of global economic challenges, it is important to understand these processes for effective management of the country’s finances. It was determined that the war led to new challenges for the currency market of Ukraine, in particular due to a sharp increase in the demand for currency to ensure international payments related to card transactions of Ukrainian citizens abroad. It has been established that the features of the foreign exchange market during the war are: an increase in demand for foreign currency due to panic and expectations of devaluation; taking a number of measures by the Government and the NBU to stabilize the currency market; negative impact on population and business due to devaluation of savings, complicated imports, credit problems, loss of confidence in the banking system; development of new strategies for business and citizens based on diversification of savings, investment in protected assets, currency hedging, stable cooperation with banks, information awareness, growing role of international support. The signs, characteristics, and significance of currency policy in commodity-exporting countries are systematized: the impact of commodity price shocks on macroeconomic volatility (price shocks, economic destabilization, monetary policy response), the relationship between commodity prices and borrowing conditions (commodity price increases, price falls, monetary policy responses), commodity market financialization (expansion of financial instruments, business cycles and global jumps in prices for raw materials), strategic steps (diversification of the economy, creation of stabilization funds, development of anti-crisis monetary policy). Challenges and further actions of the NBU in terms of development and implementation of currency policy are: resolution of inflationary risks, gradual easing of currency restrictions, increase of currency reserves.