A legal initiative aimed at granting a set of instruments allowing the National Bank of Ukraine (NBU) to quickly react to tensions on the country's currency market without involving currency reserves is justifiable and rather urgent, according to a legal expert.
Advisor of the Arzinger law firm Oleksandr Plotnikov gave his opinion
to Interfax-Ukraine while commenting on draft law No. 11033 on
amendments to some Ukrainian laws on the expansion of instruments to
influence the monetary and credit market registered in the parliament on
July 25, 2012.
“The main constitutional function of the NBU is the provision of
stability of Ukraine’s monetary unit, and the granting of instruments to
quickly influence the currency market to the NBU has grounds,
especially taking into account the high risk of another wave of
financial crisis in Ukraine, as predicted by the IMF,” the lawyer said.
The draft law foresees the granting of a right to introduce a
requirement for the obligatory sale of income in foreign currency by
exporters for a period of up to six months and changes the terms of
payments in foreign currency during export and import transactions.
“The proposed changes are aimed at giving a set of instruments to the
NBU, which will allow it to quickly react to tension on the currency
markets, not involving currency reserves,” Plotnikov said.
The lawyer said that under Article 387 of the economic Code of
Ukraine, the regime of obligatory distribution of income in foreign
currency could be introduced only by a law officially published not
later than two months before the introduction of the regime. The
procedure does not allow for a quick reaction to situations, and
considerably restricts the NBU in implementing its constitutional
function.
“We share the opinion that in the conditions of the present political
instability and coming parliamentary elections, the NBU should not be
hostage to the political will of lawmakers during the regulation of the
situation on the Ukrainian currency market,” the expert said.
