How to prevent a financial crisis in Ukraine: 4 tips from the former head of the National Bank.

Ukraine must take decisive actions today to prevent a financial crisis.

This was stated by former NBU head Kyrylo Shevchenko in an opinion piece for Mind written by him.

He proposes four key steps. First and foremost, according to the financier, Ukraine should invest in export-oriented sectors such as agriculture, metallurgy, and IT. A detailed state strategy for attracting investments should be developed immediately. Otherwise, a currency crisis will inevitably worsen if external assistance ceases.

Shevchenko noted that without reducing import dependence and developing both renewable and non-renewable energy potential, the trade deficit will continue to deepen in the country.

Another step mentioned by the former NBU head is to revise the currency policy to strengthen control over the currency market and implement a mechanism to enhance trust in the hryvnia. Otherwise, he believes the currency market risks facing panic and massive capital flight again.

Perhaps the most crucial factor in developing economic potential should be attracting foreign investments, Shevchenko is convinced. For this, Ukraine needs to implement significant reforms in the legal system, strengthen democratic institutions, and ensure reliable investment protection.

Background. Previously, Mind reported that today financial stability in the economy is maintained primarily due to extensive external support and a decline in consumer private demand.