Poroshenko officially nominates Smoliy as central bank head

Ukraine’s parliament registered on Jan. 18 the
president’s resolution nominating Yakiv Smoliy as the head of the National Bank
of Ukraine (NBU), as well as president’s request to dismiss Valeriya Gontareva
from this position. Smoliy has served as deputy NBU head and board member since
April 2014. After Gontareva announced her resignation on Apr. 10, 2017, she
left her position in one month, appointing Smoliy as acting NBU head.
Officially, Gontareva remains the NBU head, but has been on vacation since May
10.

Alexander Paraschiy: Over the
last few months, Smoliy has been considered the top candidate to officially
lead the NBU, so there is little surprise in his nomination. He looks like a
figure who can satisfy both Ukraine’s international financial partners and
power brokers. Smoliy will very likely represent the NBU at the Davos forum
next week, where Ukrainian authorities are going to meet with IMF Managing
Director Christine Lagarde. This is likely why his nomination, which raises his
status, was submitted this week. We see a high chance that parliament will
approve Smoliy’s nomination.

For the NBU and Ukraine’s financial sector, no
significant changes are expected with Smoliy’s possible appointment as NBU
head, given that he has been already running the central bank on a de facto
basis for more than eight months. But uncertainty remains as to who will join
the NBU board after Smoliy’s promotion, as well as whether there will be any
other board changes.