ANALYSIS OF FOREIGN EXCHANGE OPERATIONS OF BANKS ON THE MARKET OF UKRAINE DURING THE WAR

The article defines the shocks to which the domestic banking system has been exposed in recent years. At the beginning of the full-scale military invasion of Russia, the currency market of Ukraine found itself in a state of paralysis and destabilization due to a significant shock demand for foreign currency from the population. However, during the first 2–4 weeks, the National Bank of Ukraine managed to stabilize the situation and restore the basic functions of foreign currency circulation for residents. The shortage of currency during this period forced the monetary authorities to resort to devaluation of the hryvnia against the US dollar and the euro. Although the pace of this devaluation now seems somewhat exaggerated, an important result of 2022 was the provision of citizens’ access to cards of international payment systems and the possibility of converting cashless hryvnia into foreign currency at an acceptable rate. banks were managed during the organization of their activities. The mechanisms of the National Bank of Ukraine’s support of the domestic banking system have been studied. The structure of currency transactions and the market is analyzed through the prism of determining the influence of the state of war on its change. The influence of the amount of cash currency brought to Ukraine by banks and private transfers of labor migrants through unofficial channels on the situation with the hryvnia exchange rate is considered separately. The key trends to which the foreign exchange market has been exposed over the past year have been established, and the measures introduced by the National Bank to stabilize it are given.