Ukraine treasury residuals rise 11% in November, UAH under risk

Ukraine’s treasury residuals grew 11.4% m/m to UAH
54.1 bln as of Dec. 1, the State Treasury reported that day. The Dec. 1 figure
marks the highest it’s ever been at that particular date, though the highest
historical level was at the start of September 2017 (at UAH 63.2 bln).

Alexander
Paraschiy: Such large cash residuals at
the end of the year are very bad news for the hryvnia’s prospects. We
anticipated cash accumulations would drop by December to ease pressure from the
boosted fiscal spending that is traditional for the year end. Instead cash
accumulations only increased. Unfortunately, this means there will be massive
hryvnia injections in the upcoming weeks with a subsequent surge in
depreciation pressure on the national currency.