Homepage / Currency / Ukraine is about to make another crucial step toward Europe
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Currency, United States Finance

Ukraine is about to make another crucial step toward Europe

This Thursday, the Verkhovna Rada (the parliament of Ukraine) considers a historic proposal to replace 25-year-old foreign exchange legislation with an entirely new law that will open our country to international investors and make it easier for Ukrainian businesses to operate globally.

Technical though it may seem, liberalization of our arcane foreign exchange controls will make Ukraine a much more investor-friendly place and will help the country take its rightful spot amongst the major European and global economies.

For nearly four years now, we at the National Bank of Ukraine (NBU) have been working to stabilize the macroeconomic situation and create a solid foundation for economic growth in Ukraine and prosperity for all who live and work here.

We have come a long way during that time. My new post-revolutionary team took over the National Bank in 2014, finding ourselves in an incredibly difficult context. Ukraine was not only experiencing military aggression from Russia in the East, but the profound economic turmoil that coincided with it — since, our team at the National Bank have worked tirelessly to stabilize the situation and tame inflation.

Today, the banking system is in better shape than it ever has been in the history of independent Ukraine thanks to the clean-up and reforms implemented since 2014. All of the obligations that the National Bank took on under the last IMF (International Monetary Fund) memorandum have been fulfilled.

External markets are also favorable for Ukraine as economies of our trade partners are recovering and commodity prices are high.

We must maintain this momentum, make life better for businesses and support investment. The time has come for large-scale foreign exchange liberalization. The proposed law moves us toward that goal.

To say it is overdue would be an understatement. The key legislation setting out our current currency control rules is a full 25 years old and it has not aged well. In the 1990s when Ukraine was struggling to tackle the Soviet legacy, set its economy on market rails and control capital outflows, highly restrictive rules on foreign currency transactions made sense. Today they are out of place and are holding back growth.

Out of Ukraine’s patchwork of foreign exchange laws, about 70 percent of the rules are about prohibiting or restricting things. This means administrative burden, delays and complications for Ukrainian businesses trading with overseas partners, foreign investors repatriating their investment or dividends, for Ukrainian freelancers doing work for overseas clients and many others.

The regulatory system we have had in place for the last quarter of a century no longer reflects the business environment in Ukraine. Our highly qualified, multilingual workforce and our innovative approach to development has seen an ever-increasing amount of interest from foreign investors looking to set up in or outsource operations to Europe.

Our tech sector is but one example: a thriving industry worth around $5 billion. We boast the largest number of IT professionals in Europe and play host to numerous multinational brands including Google, Microsoft, Samsung, Boeing, eBay, Siemens, IBM and Huawei, who all have research and development centers here.

Our start-up environment too, is leading the way for our European peers. A number of high profile software start-ups, including the now-famous writing app Grammarly, have gone global and are used by millions every day. It is a lucrative sector: One of the most notable start-up deals we’ve seen came from Ukrainian-born augmented photography start-up Looksery, who was acquired by Snapchat for $150 million.

When the draft law developed by my team, entitled “Currency Law,” is approved by parliament we can expect more and more success stories to come forward. The law will move Ukraine’s foreign exchange regulation from a position of “if it’s not expressly allowed, it’s forbidden” to “if it’s not expressly forbidden, it’s allowed” — a much more helpful stance for our banks and businesses looking to operate internationally. Households back home will benefit too as more jobs are created.

This reform will be some of the best news for business to come out of Ukraine this year. It will help give investors into Ukraine peace of mind and minimal administrative burden when it comes to doing deals or repatriating profits. As the ease of doing business continues to increase, so too will our country’s ability to secure the investment we need.

Looking at the big picture, this is Ukraine opening up to the world and taking a step forward on the (long) road of its EU integration ambitions. European Commission experts were involved in developing the new law and it takes inspiration from relevant EU Council regulations. This law is about the free movement of capital, which is crucial for well-functioning economies in today’s world.

That goal is always in sight for us. To achieve greater integration into the European economy, and our place globally, we must operate at the same level as our European counterparts. This means transparent operations and investor-friendly policy required to work together with international businesses. In addition, it means financial stability, as the “Currency Law” provides the National Bank with power and tools to prevent and get over the crises whatever origin and development they have. That is another reason why the draft law received the support of the International Monetary Fund.

We, the National Bank of Ukraine and myself as its new governor, have a unique opportunity to help secure sustainable growth and prosperity for generations of Ukrainians — Ukraine has much to offer the world, and it is the NBU’s job to make sure that everyone can benefit.

—Yakiv Smolii is the governor of the National Bank of Ukraine.

Source: cnbc
Ukraine is about to make another crucial step toward Europe

Comments are closed.