These are meaningless comments from Ukrainian President Volodymyr Zelensky in support of National Bank of Ukraine independence, a little like Turkish President Recep Tayyip Erdogan’s comments in support of the independence of the Turkish central bank, when we know in Turkey the agenda is just to cut rates as quickly as possible.
https://en.interfax.com.ua/news/economic/616467.html
In Ukraine it is not about the independence of the NBU to set monetary and exchange rate policy – they seem totally independent there. But this is about one issue: PrivatBank.
And therein, and linked, its a bit serious when the NBU feels compelled to post on its website a warning that reformers face terror attacks.
https://bank.gov.ua/news/all/zayava-pravlinnya-nbu-pro-teror-proti-ukrayinskih-reformatoriv
That puts things into perspective – this is an extreme central bank independence risk, this is about the safety of central bank staff and reformers, in general in the country. Just think about that – reformers and central bank officials in Turkey are not in danger for their lives, but they are in Ukraine. The biggest risk for a banker at the Bank of Europe is whether southeast trains fail to arrive on time, not their lives.
And its about the efforts to turn around the nationalization of PrivatBank. And the only way that Zelensky can assure about central bank independence is to come out on the side of the NBU and the International Monetary Fund on the nationalization of PrivatBank.
The big question is why will Zelensky will not say he backs the NBU position about PrivatBank – why not? Whose side is he on? The Ukrainian people – who were milked over by having to pay 5% of GDP in bailing out PrivatBank – or the former owners?
It’s pretty straightforward Volodymyr.
And I don’t think many reformers will want to work for you if they fear for their lives – notable that Alex Danylyuk departed this week from heading the National Security and Defense Council, and cited (in a BBC interview) the PrivatBank issue, amongst others as to the reason for his departure.
