Page 111 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

Currently, the introduction of inflation targeting in Ukraine is at the

discussion stage. The main reason for delaying the implementation of
inflation targeting is an insufficient degree of central bank independence.

Employing modern European methodology and experience of foreign

consultants, expert group of the National Bank of Ukraine has identified
priorities and proposals to minimize political influence on monetary policy.

Most of them were reflected in the changes to the banking law - the Law of
Ukraine "On amendments to some legislative acts of Ukraine on the National

Bank of Ukraine" from 09.07.2010 2478-VI.
According to the latest amendments to the Law of Ukraine "On the National

Bank of Ukraine", guarantees of political independence of the National Bank of Ukraine

ware strengthened:
- qualification requirements for the Chairman of the National Bank of

Ukraine were established; longer cadence tenure of up to 7 years was introduced

in order to avoid overlapping with the term of authority of the Verkhovna Rada
of Ukraine and the President of Ukraine (5 years), with the Chairman to be

appointed by the Supreme Council of Ukraine by recommendation of the
President of Ukraine;

- also cadence tenure of members of the Council of the National Bank
of Ukraine was increased up to 7 years, with the chairman of the Council of

the National Bank of Ukraine to be elected for three years;

- the criteria were defined for the Chairman of the National Bank of
Ukraine to be dismissed, in particular, to avoid the influence of the President

of Ukraine on the Chairman’s decisions, and the ability of the Verkhovna
Rada of Ukraine to dismiss the Chairman based on the President’s

recommendation was abolished;
- a set of clear requirements for the members of the Council of the

National Bank of Ukraine were defined, including their non-membership in

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