Ukraine Central Bank Chief quits, calls resignation a protest agin political pressure

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Ukraine Central Bank Chief quits, calls resignation a protest agin political pressure

The departing Chief of the National Bank of Ukraine, Yakov Smoly, whose resignation as the head of the regulator was approved later on Friday in the Ukrainian Parliament, said that his resignation had been part of a “protest” against “systematic political pressure” to make decisions which could not be economically justified, causing worrying comments from international partners alongside Kiev’s Western allies who had been supporting the Ukrainian economy since its independence on August 24, 1991, from the former Soviet Union.

In point of fact, under the leadership of Smoly, the Ukrainian National Bank (Central Bank of Ukraine) had managed to keep the country’s inflation below less than 2 per cent on an annualized basis and had reduced the discount rates to the lowest level of 6 per cent since the independence of the country.

Smoly defines his resignation as a redline for the economy

Meanwhile, shortly before the Ukrainian parliament voted to ditch out its National Bank Chief later on Friday, raising a red flag over the independence of Ukrainian Central Bank, Smoly said in a statement that slandered the Ukrainian Politician and raised concerns among the country’s heavyweight allies such as EU and the US, “I made a difficult but necessary decision - to resign, because for a long time the National Bank has been under systematic political pressure, pressure to make decisions that are not economically justified ...

and can cost the Ukrainian economy dearly. This is a protest, this is a signal, this is a warning, this is a red line. With my resignation, I want to warn against further attempts to undermine the institutional foundations of the central bank”.

On top of that, referring to the comments from Smoly, a number of International lenders, who had long been praising the activities of the 29-year-old country’s Central Bank, had warned the politicians of Kiev that the likely restriction on Ukrainian Central Bank would be contemplated as a sweeping rollback from constructive reforms.