Ukraine monetary base improves 0.5% mom in March

Ukraine’s monetary base increased 0.5% mom (+0.3% YTD) and its money supply (M3) grew 1.5% mom (+3.5% YTD) in March, according to National Bank of Ukraine (NBU) data released on April 9. Purchases of state bonds by the NBU halved mom in March to UAH 3.0 bln, according to the data.

Alexander Paraschiy: The NBU increased its exposure to the government by UAH 3.0 bln in March, while state deposits reportedly increased only UAH 0.8 bln. Therefore, net loans to the government contributed the most to the monetary base. This gradual growth of the monetary base (+0.3% YTD) is in line with our previous estimates and we are keeping our monetary base forecast growth at 6.1% for 2013.