Money supply in Ukraine up by 1.4% m/m, monetary base up 0.3% m/m in September.

By bne IntelliNews October 11, 2013

In September, the monetary base had expanded by 0.3 % m/m (by 11.5 % ytd) to UAH 284.6bn. The money supply rose by 1.4 % m/m (by 12.4 % ytd) to UAH 868.8bn, the National Bank of Ukraine (NBU) has announced.

During September, the outstanding amounts of deposits climbed by 2.0% m/m (by 13.0 % ytd) to UAH 641.7bn. Both national currency deposits, which grew by 2.7% m/m (by 22.7 % ytd) and foreign currency deposits, which increased by 1.0% m/m (by 0.6% ytd), contributed to the deposit growth. Household deposits had climbed by 1.5% m/m (by 16.2% ytd) to UAH 425.1bn, whereas the outstanding amounts of business deposits grew by 3.1% m/m (by 7.2 %ytd), having reached UAH 216.6bn.

In September, the outstanding amounts of loans increased by 1.6% m/m (by 6.1 % ytd) to UAH 859.1bn. The loan growth was mainly driven by an increase of 2.6% in the outstanding amounts of national currency loans (by 8.5% ytd). In contrast, foreign currency loans had shrunk by 0.2% m/m (up by 2.2% ytd). At the same time, loans to businesses rose by 2.0% (by 7.1 % ytd) to UAH 670.6bn and loans to households had grown by 0.3% (by 3.0 % ytd), having reached UAH 188.5bn. In September, the amount of cash in circulation outside banks decreased by 0.4 % (up by 10.4% ytd) to UAH 224.3bn.

The banks’ correspondent accounts increased by 6.8% m/m (by 15.9 % ytd) to UAH 28.6bn. As of Oct 1, the banks’ required reserves compliant with the applicable norms amounted to UAH 24.6bn, of which UAH 9.7bn was transferred to the separate account with the NBU.

In September, the National Bank of Ukraine carried out refinancing transactions worth UAH 1.0bn (from the start of the year – UAH 27.3bn), with an average weighted interest rate thereon standing at 6.64% per annum (from the start of the year – 7.44%). At the same time, the fund-raising transactions conducted by the NBU amounted to UAH 60.9bn, with an average weighted interest rate thereon standing at 1.94% (from the start of the year – UAH 181.4bn and 2.04 % respectively).

The NBU plans growth of monetary base in Ukraine in 2013 to amount to 6-8% depending on the scenario of economic development. The government's forecast for macroeconomic indicators contains two scenarios. Under the first, optimistic scenario, the growth of the monetary base in 2013 could be 8%. If the macroeconomic situation develops according to the second pessimistic scenario, there is reason to forecast that the growth of the monetary base will be 6%.

  Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
Money supply, M3, UAH bn 779.20 786.60 800.00 816.90 821.20 834.48 850.30 856.28 868.80
% m/m 0.80 0.80 0.50 2.00 0.40 1.60 1.70 0.60 1.40
Monetary base, UAH bn 251.70 255.00 256.10 267.20 270.80 275.73 278.90 283.66 284.60
% m/m -1.40 1.3 1.5 4.3 1.3 1.8 1.1 1.70 0.3
Gross NBU reserves, USD bn  24.65 24.70 24.73 25.24 24.54 23.14 22.72 21.65 21.65
Discount rate 7.50 7.50 7.50 7.5 7.00 7.00 6.50 6.50 6.50
Source: NBU                  

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