NBU council initiates expansion of its powers, granting it status of decision-making body of NBU

The Council of the National Bank of Ukraine (NBU) should address the Verkhovna Rada with a proposal to initiate amendments to the law on the NBU, according to which the council would be able to set key performance indicators (KPI) for the monetary and credit policy for the board, while the function of assessing and supervising the monetary and credit policy would be reinforced by the influence tool, Chairman of the NBU Council Bohdan Danylyshyn has said.

"To consider the possibility of expanding the powers of the council, giving it the status of the decision-making body of the NBU, endowing it with more effective tools for making decisions if the goals set for the NBU are not achieved," he wrote on his Facebook page on Wednesday following the meeting of the council where he was temporarily re-elected chairman as his power will expire on October 26.

Among other possible changes to the law on the National Bank, Danylyshyn named the elimination of the dependence on wages of council members from board members, strengthening the accountability of the board and the council to the public, full external control of all NBU facilities, reducing the size of general reserves for releasing public funds, strengthening the independence of the NBU's internal audit unit and the secretariat of the council.

In addition, the Council of the National Bank advocates for providing it and the experts of its secretariat with access to the documented forecasting models and NBU processes, in particular, the models and calculation algorithms used by the National Bank when setting the refinancing rate.

According to him, the council should increase the level of communications with the Verkhovna Rada, continuing the practice of regularly inviting MPs to meetings of the council, and quarterly hear a board report on the state of the foreign exchange market, NBU interventions in the foreign exchange market and the state of forex reserves.