Dance Of Rates: Insights Into Uncovered Interest Rate Parity In Ukraine

This thesis investigates the applicability of Uncovered Interest Rate Parity (UIP) in Ukraine, a key theoretical framework in international finance that posits a relationship between interest rate differentials and expected exchange rate changes. By analyzing historical data on Ukrainian interest rates and exchange rates, this study aims to determine whether UIP holds in the context of Ukraine's emerging market economy. Empirical tests, including regression analysis and cointegration techniques, are employed to evaluate the validity of UIP. This research contributes to a better understanding of the factors affecting exchange rate movements in Ukraine and highlights the need for further investigation into the role of risk premiums and market expectations. The results have significant implications for policymakers and investors engaged in the Ukrainian financial markets.