Photo by Giorgio Trovato on Unsplash

Today has been a busy day in Ukrainian politics. The Ukrainian Parliament, Verkhovna Rada, has passed a law strengthening the independence of the National Bank of Ukraine, NBU.

The Ukrainian parliament has passed a new law strengthening the independence of NBU, a major concern of the International Monetary Fund, IMF. The passing of this law is also the fulfilment of the agreement between Ukraine and IMF, opening the door for Ukraine obtaining the next 700 million USD tranche, Kyiv Post reports.

The new power will in effect limit the power of the NBU Council, which is the board behind the monitoring and evaluation of the bank, but also a body creating monetary policies. In addition, a new code of ethics for NBU employees and new clarified rules for dismissing the head of the central bank.

As Ukriane Nu reported earlier, there are rumours of President Volodymyr Zelenskyy wanting to dismiss the current governor of the NBU, Kyrylo Shevchenko, who Zelenskyy previously called “his big personnel mistake.”

After Shevchenko got his position in the bank, there has been an exodus of leading employees. In July, several employees and department heads left their jobs in the bank, saying that the standards of NBU had fallen too low. Some even called Shevchenko “autocratic.”

“We sincerely love the NBU and want to continue working there,” said Oleksandr Bevz, the now-former director of the licensing department. “However, it’s currently impossible to continue our work in the National Bank. The centralization of decision-making in one pair of hands, the replacement of collegiality with directive decision-making, are in our opinion, unacceptable.”

Since the former director of NBU, Yakiv Smolii, left his position, NBU has been cause for many concerns not just in Ukraine, but also in the international community of investors. Most notably, it led to the breakdown in the negotiations between Ukraine and the International Monetary Fund.