The resignation of the NBU chairman threatens Ukraine with a financial crisis

On Wednesday evening, July 1, 2020, the Chairman of the National Bank of Ukraine, Yakiv Smoliy, wrote his resignation. He explained his decision by strong political pressure "from above".

The independence of the NBU was one of the main requirements for Ukraine to receive the IMF tranche. Smoliy's resignation actually means the regulator's loss of its independence and threatens Ukraine with a financial crisis. Well-known financiers and economists have already expressed their assessment of this situation: Tomasz Fiala, Pavlo Kukhta, Valeria Gontareva, Volodymyr Lavrenchuk, Olena Bilan (Liga).


Anton Shvets, one of the co-founders of the “Democratic Axe”, citing insider information from the President's Office, said that Smoliy's resignation was initiated directly by Ukrainian President Volodymyr Zelensky, who summoned the NBU chairman to his office and had a long conversation with him. The result of this conversation was the resignation of the NBU chairman. The first consequence of the resignation of the NBU chairman was that Ukrainian bonds, worth 1.75 billion US dollars, which were placed in the evening, had already been withdrawn in the morning.


It will be recalled that on the eve of June 17, the parliamentary committee on finance, tax and customs policy, headed by Danylo Hetmantsev, decided to recommend the Verkhovna Rada to adopt a draft resolution critically assessing the NBU leadership in 2019 and early 2020 (Finbalance).


The consequences of the resignation of the NBU chairman are currently difficult to predict, but Ukraine's financial stability is under serious threat.