December edition of scientific e-journal The Visnyk of the National Bank of Ukraine, which was published today, is dedicated to relevant issues of money market regulation, developments and introduction of effective mechanisms of monetary policy implementation, build-up of new instruments for macroeconomic forecasting and identification of risks in banks activity.

Articles published in new edition of the journal contain scientifically reasonable proposals and practical recommendations on the following topics:

• Domestic and global experience in dollarization and development of cashless settlements

In article Cashless Society and De-Dollarization in Ukraine: What Is Missing From Present Discussions? Mr Marko Škreb, Project Manager for Canada-IMF and Mr Kostiantyn Khvedchuk, economist of Monetary Policy and Economic Analysis Department, on basis of analysis of global experience identified preconditions of high level dollarization in developing economies and proposed practical measures to extend the scope of cashless settlements in Ukraine. Researchers reasonably prove that to lower the level of foreign currency use in Ukraine, the level of confidence in domestic currency and banking system on the whole must be higher. According to their opinion, it must become one of the key guidelines for effective monetary policy implementation.

• Methodology of risks identification in banks activity

Mr Vladyslav Rashkovan, partner in SD Capital Investment Company and former NBU Deputy Governor, and Mr Dmytro Pokidin, leading economist of Financial Stability Department of the NBU, in article Models for Ukrainian Banks’ Business Models Clustering: Application of Kohonen Neural Networks propose using Kohonen neural networks for identifying potential risks in banking sector. Researchers identified six business models of banks and evaluated their dynamics in crisis. Developed risks-maps for different bank clusters proved the efficiency of the proposed methodology. The results obtained can become the backbone for the development of an Early Warning System and Supervisory Review and Evaluation Process, and for evaluation of sustainability of the banks, for instance, in merger and acquisition processes.

• Role of foreign exchange interventions in monetary policy implementations under conditions of inflation targeting

The article entitled Applying FX Interventions as an Additional Instrument Under Inflation Targeting: the Case of Ukraine, coauthored by Anton Grui and Volodymyr Lepushynskyi, looks into the peculiarities of application of foreign exchange interventions under conditions of an inflation targeting regime in developing economies. On basis of the proposed approach using NBU Quarterly Projection Model, coauthors assessed potential impact of foreign exchange interventions on money market stabilization under different macroeconomic shocks. Researching the issue of achieving prices stability targets and international reserve accumulation by central banks, coauthors concluded that application of foreign exchange interventions under inflation targeting is reasonable.

Currently, articles are available in English, and will be soon published in Ukrainian.

As a side note, It is the sixth issue of The Visnyk of the National Bank of Ukraine. From September 2015, The Visnyk of the National Bank of Ukraine journal is published on the official NBU site in electronic format quarterly in Ukrainian and English. The editorial board invites academics, experts, financiers and representatives of banking academic community to join the research within the area of the journal and send authentic research materials for review and publication to email: [email protected].