Ukraine monetary base rises 1.8% in November

Ukraine’s monetary base grew 1.8% m/m (UAH 7.5 bln) to
UAH 432.5 bln in November after climbing 0.2% m/m in October, the National Bank
of Ukraine (NBU) stated in a provisional report released on Dec. 12. The
monetary base has increased 8.4% YTD. Money supply dropped 1.3 m/m to UAH 1,229
bln. Money supply rose 1.6% YTD.

Evgeniya Akhtyrko: We found
two major factors that contributed to monetary base growth in November. Boosted
NBU foreign currency purchases during the month (net USD USD 232.8 mln) caused
a significant amount of hryvnia to be disbursed to the system. Secondly, the
NBU continued to refinance banks, disbursing UAH 1.7 bln for this purpose
during the month. 

As of November, the YTD increase of the monetary
base exceeded our 2018 forecast of 6.1%.