As Deputy Governor of the Central Bank Sergei Nikolaychuk explained, if the state uses fiscal levers, it can correct the deficit in the foreign trade balance.
The National Bank of Ukraine (NBU) considers it possible to limit non-critical imports using fiscal levers due to the risk of reducing international aid, thus financing the high foreign trade deficit. Deputy Governor of the Central Bank Sergei Nikolaychuk said this in an interview with the Interfax-Ukraine agency.
Important
“If such restrictions are implemented through the imposition of additional duties on non-critical imports, this is one of the measures aimed at adjusting foreign trade balances and strengthening the state’s ability in the fiscal sphere,” he explained.
According to him, it is normal for Ukraine to have a high trade deficit, since the country is at war, production capacities have been destroyed. However, this problem does not threaten the Ukrainian economy as long as it is possible to finance the deficit with international aid. However, if the support decreases or is absent, then it will be very difficult to provide the economy with imported products from international reserves.
“Accordingly, the situation will be resolved through a specific macroeconomic correction, a significant reduction of consumption. Of course, we will make every effort to avoid such a scenario in war conditions. Because this could significantly “explode” both our defense capability and the potential of the economy, ” – said Nikolaychuk.
The Deputy Governor of the Central Bank also noted that limiting domestic consumption by weakening the national currency in a war economy is a counterproductive method that will not solve the problem in the event of a negative scenario.
Important
Let us recall that Daniil Getmantsev, chairman of the Committee on Finance, Taxation and Customs Policy of the Verkhovna Rada, was in an interview. Focus He said that the amount of foreign aid to Ukraine in 2024 should be at the level of 37.3 billion dollars. According to the politician, the International Monetary Fund (IMF) will provide a loan of 15 billion dollars to our state, and the income from the fund in 2024 will be 5.3 billion dollars.
Additionally, Finance Minister Sergei Marchenko announced in October how long Ukraine would need financial assistance from its allies. He noted that the need for foreign financing would continue even after victory in the war.
Source: Focus
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