National Bank of Ukraine (NBU) is the central bank of Ukraine and it was created when the country became the independent state. The Ukrainian Constitution governs all actions of the NBU, which are as follows: implementation of a monopoly to issue national currency and the organization of its circulation, the organization of foreign exchange regulation, the establishment and promulgation of the hryvnia (national currency of Ukraine) against other foreign currencies. In addition, the National Bank carries out banking supervision and regulation, establishes rules for conducting banking operations and monitoring their implementation, arranges the system of refinancing etc.
When Ukraine received the status of the independent state, it faced the unpracticality to adapt to market conditions, and as a result, hyperinflation and reduced production, which were resolved through monetary reform, held from 1994 to 1996. Another result of the reform was the restoration of the old currency - the hryvnia (UAH).
According to the Constitution of Ukraine, the administration of the National Bank includes the NBU administration and the Council of the National Bank. NBU Council consists of 14 members, 7 of which are elected by the president, and another 7 – by the Verkhovna Rada. The Chairman of the Council shall be elected by its members; the head of the NBU is adopted by the Verkhovna Rada after the submission of nominations by the President. The Head of the NBU is in office for 5 years before the next election, and Chairman - 3 years. The members of the Council of the National Bank of Ukraine may be dismissed by the President, who appointed them, or Verkhovna Rada, depending on the person who submits them to the post, but not earlier than one year after their approval in this post.
In 2008 the former Prime Minister of Ukraine Yulia Tymoshenko has officially made a statement on the indictment against the National Bank of Ukraine, which claimed that the Bank does not maintain a stable hryvnia exchange rate, but rather holds the machinations of the national currency. Petr Simonenko, the leader of the Communist Party of Ukraine, said that the National Bank is the largest Mafia structure in the country. He also insisted on the need to take drastic measures to change this situation.