Shock Resignation of Ukraine Central Bank Head

Yakiv Smolii

Ukraine's central bank chairman  has resigned.

In a statement, Smolii said he left the National Bank of Ukraine due to political pressure.

This may be as a result of a $5 billion eighteen-month loan Ukraine received as emergency funds due to the COVID-19 crisis, $2.9 billion of which has already been distributed.

His letter of resignation submitted to President Volodymyr Zelensky said:

For a long time, the National Bank of Ukraine has been under systematic political pressure. This makes it impossible for me, as the Governor, to effectively carry out my duties as the head of the National Bank of Ukraine and interact with other government agencies,” according to the statement posted prominently on the NBU's official site.

I’ve submitted my resignation appeal to the President. This decision has been taken as an answer to systematic political pressure that denied fulfillment of my duties as the Governor. Let it be a warning for attempts to undermine institutional independence of the central bank. pic.twitter.com/cFQuAlakrM

— Yakiv Smolii (@YSmolii) July 1, 2020

 “Under his leadership, Ukraine has made important strides in achieving price stability, amply demonstrating that an independent central bank is a key element of modern macroeconomic policymaking,” an IMF spokesman said in a statement.

“That is why the independence of the NBU is at the centre of Ukraine’s Fund-supported programme, and why it must be maintained under his successor.”


-RW