Source: Government of Ukraine
The resignation of Yakiv Smolii as the head of the National Bank of Ukraine will not affect the stability of the Ukrainian currency.
The Prime Minister of Ukraine Denys Shmyhal stated on the air of the Savik Shuster’s Svoboda Slova talk show.
In particular, commenting on the resignation of the NBU head, the PM noted that the most essential thing now is to prevent the creation of myths, speculation and manipulation about this dismissal.
At that, he noted that the independence of the National Bank is guaranteed by the Constitution of Ukraine and enshrined in Ukrainian law. “What is, according to the law, the mission of the NBU? The first is to ensure the stability of Ukraine’s currency, the second is to ensure price stability, the third is to ensure financial stability, including the stability of the banking system, and the fourth objective is to ensure Ukraine’s economic development and support economic policy of the Government of Ukraine, provided that the first three are maintained,” said Denys Shmyhal.
Moreover, he stressed that the Government has a constructive relationship with the NBU and professional discussions are taking place, which “are tough, as they are designed to ensure those four points within the range of responsibility of the National Bank.”
Denys Shmyhal also stressed that now the financial situation in the country is stable. “The liquidity of banks as of the beginning of this month is about UAH 200 billion, the balance in the Single Treasury Account is UAH 135 billion. During the joint meetings with the NBU we worked out a common policy to overcome the economic crisis and this is a gradual reduction of the NBU discount rate.”
According to Denys Shmyhal, due to the resignation of the NBU head, which turned out to be somewhat unexpected, there is usually tension and anxiety, but “Ukrainian law is written in such a way that replacing the head of the National Bank will not affect the exchange rate.”
Regarding the appointment of the next head of the NBU, the Prime Minister noted that it would take time to find a suitable candidate. According to the Head of Government, he took part in consultations held by the President of Ukraine with the NBU Board, the NBU Council, the heads of state and largest commercial banks and the heads of banking associations. “There are two requirements for candidates – high professionalism and sterling reputation. In the coming days, such a candidate will be selected. All bank managers, major players in the banking market have already voiced their proposals, there is a shortlist of candidates,” said Denys Shmyhal.
Meanwhile, the Head of Government noted that the resignation of the head of the NBU did not seriously affect Ukraine’s relations with international partners. “We prolong our cooperation. Yesterday the Minister of Finance had a conversation with the IMF. Today I spoke with the Vice-President of the European Commission. We confirmed the invariability of the National Bank’s policy. Our international partners are waiting for a decision without panic. And it’s of paramount importance that we continue to work with Europe. I hope that in the near future we will sign another memorandum on the next tranche of macro-financial assistance from the EU,” said Denys Shmyhal.