Central banker of the Soviet collapse and Russian transition
On "Black Tuesday," October 11, 1994, the ruble crashed 27% in a single day on the Moscow exchange. Three days later Gerashchenko's Central Bank drove the rate back almost to where it started, crushing the speculators. As a fellow banker put it: "The banks realized the Central Bank could show its teeth."
The only person in Russian history to head the country's main bank four times: twice as Gosbank chairman and twice as Bank of Russia chairman. Appointed Gosbank chairman in 1989, he managed the monetary system through the Soviet collapse. As the Bank of Russia's first chairman in 1992, he carried out the 1993 currency reform. Recalled during the 1998 financial crisis, he negotiated with the IMF and stabilized the ruble, serving into the early Putin presidency. After retiring, he served as a State Duma deputy for the Rodina bloc and ran for president.
Career Timeline
- 1960s–1970sRises through Soviet foreign banking and international finance
- 1980sMoves through foreign-trade banking into Gosbank leadership
- 1988–1991Gosbank chairman during late-Soviet monetary strain and republic-level financial fragmentation
- 1991 이후Handles transition-era financial crises in the Russian central bank
- 1998 이후Returns as central-bank head after the Russian financial crisis
Related historical events
- 1985–1991Perestroika and GlasnostHead of Gosbank, managed currency
- 1987–1991The Economic Reform Debate and the 500 Days ProgrammeChairman of USSR GosbankCo-signed the Dec. 1990 letter opposing reform but a month later executed the note exchange. Reported that only 40 of 48 billion rubles in circulation were surrendered.
The 1998 Financial Crisis and Return to the Central Bank
In August 1998, Russia defaulted and the ruble collapsed. Central Bank chairman Sergei Dubinin stepped down, and the new government under Prime Minister Yevgeny Primakov turned to Gerashchenko to manage the crisis. He was reappointed chairman on September 11, 1998. Having already led the Central Bank from 1992 to 1994, he was tasked with rebuilding a shattered banking system. Gerashchenko negotiated with the IMF, sought to stabilize the ruble, and served under four prime ministers: Primakov, Stepashin, Putin, and Kasyanov. During the early Putin presidency he retained a degree of monetary autonomy, but in March 2002 the State Duma approved his resignation at the president's request, ending his second term after nearly four years. He was succeeded by Sergei Ignatiev. The American economist Jeffrey Sachs called him 'the worst central banker in the world,' and Yegor Gaidar later wrote that appointing Gerashchenko in 1992 was the most serious mistake he made that year. Gerashchenko remains the only person in Russian history to have headed the country's main bank four times: twice as Gosbank chairman and twice as Central Bank chairman.