Банкеръ Weekly



An avowed opponent of central banks and adherent to the theory that the financial system may function only with private credit institutions, independently issuing money, will be on the Board of Governors of the Bulgarian National Bank (BNB). On June 11 the President Georgi Purvanov appointed Assoc. Prof. Doctor of Economic Sciences Nikolai Nenovski a member of the central bank's Board fo Governors, to replace Prof. Roumen Avramov whose mandate elapsed on June 13.Mr. Avramov and Mr. Nenovski held severe theoretical disputes on the essence of monetary reform and the future of the Bulgarian currency. It is claimed that their arguments began in 1998 when Mr. Nenovski was a chief expert in BNB's Analyses and Forecasts department. A year later, in January 1999, he was appointed head of the central bank's Monetary and Financial Analysis department and occupied this position till March 2002. He was in the group of BNB's experts who in 1999 (without the consent of the bank's Board of Governors) declared it was needless to continue issuing levs and Bulgaria should unilaterally introduce the euro as a national currency. This statement provoked a grand scandal and BNB's Governor Svetoslav Gavriiski together with Roumen Avramov had to explain why the ideas of the group were impracticable.Nenovski, who will turn 40 on July 26, is a staunch adherent to the introduction of the euro in Bulgaria and believes this would result in imposing a system that would be much more stable than the effective currency board arrangement. He expressed such ideas in his book Euroization, published in 2001. And his theory about the unnecessary central banks is presented in his book The Free Money. He advances the thesis that the central banks' monopoly has been artificially imposed and hampers the free competition on the financial markets.Assoc. Prof. Nenovski, who graduated in economics from the Moscow-based state institute Michail Lomonossov and has specialized in finances and economics in three French universities, believes that the wider spread of e-money on the world markets will completely oust the traditional banknotes and coins, which would make senseless the existance of central banks.It is interesting how a person with such concepts would manage to get on with the other members of BNB's Board of Governors, whose views on this issue are rather more conservative.

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