THE FORMATION OF THE MONETARY AND CREDIT REGULATION SYSTEM IN UKRAINE

Abstract

Monetary and credit regulation occupies a central place in the macroeconomic policy system, as it is through the instruments of monetary policy that conditions are created to ensure price stability, inflation control, sustainable economic development, and financial system resilience. The National Bank of Ukraine, by shaping the parameters of money supply, the discount rate, the exchange rate regime, and the conditions for credit market functioning, creates an environment where investment decisions are implemented, financial flows are redistributed, and the expectations of economic agents are formed. The effectiveness of monetary policy determines the availability of credit resources, the scale of investments, the stability of the foreign exchange market, and the level of financial risks, creating prerequisites for predictable macroeconomic dynamics and a high level of confidence in the state's economic policy. The process of forming the monetary and credit regulation system in Ukraine has acquired unique historical significance, determined by its implementation under conditions of fundamental systemic transformation of the national economy, namely, the transition from a command-administrative model to a market economy, overcoming the hyperinflation of the early 1990s, and the formation of its own monetary and financial infrastructure. The introduction of the Hryvnia in 1996 became a defining event in the institutional development of the monetary system; however, the subsequent dynamics of monetary and credit policy were shaped by a series of crisis episodes in 1998, 2008, and 2014, which consistently revealed the vulnerability of the banking sector, dependence on external shocks, and the need for deep structural transformations. In the current period, Ukraine's monetary policy operates under the unique conditions of full-scale war, large-scale needs for budget deficit financing, and structural restructuring of the national economy, which increases the requirements concerning operational efficiency, adaptability, and institutional independence of the central bank and serves as a guarantee for ensuring macro-financial stability under conditions of high uncertainty.