Ukraine monetary base jumps 3.7% in June
12 July 2017
Ukraine’s monetary base jumped 3.7% m/m in June after no growth in the prior month, the National Bank of Ukraine (NBU) reported on July 11. Since the year’s start, the monetary base is unchanged. Money supply dipped 1.3% m/m (no net change since December) from a 0.1% decline in the prior month.
Alexander Paraschiy: NBU interventions at the ForEx were the main source for money formation in June as the NBU purchased USD 300 mln on the market. In the meantime, residuals at treasury accounts remained almost unchanged, increasing 3%.
This tendency of purchasing excessive foreign currency at the ForEx will sustain itself till the summer’s end. In September, we see traditionally stronger budget outlays taking the lead. For 2017, we project a 8.6% YTD monetary base increase.
