Money Supply Increases 3.8% in August

The money supply (M3) grew 3.8% mom in August to reach USD 65.1 bln and increased 26% YTD, up from 16.7% growth in 8M06. The monetary base grew by 4.2% mom in August to USD 23.9 bln and was up 24% YTD. Polina Khomenko: The expansion of the monetary base at a rapid pace this year is due to the NBU’s substantial FX interventions on the back of robust capital inflows. In trying to prevent hryvnia revaluation, the NBU increased its net FX purchases to USD 6.1 bln in 8M07, which resulted in the further accumulation of NBU FX reserves. In August, NBU reserves grew 5.8% mom and reached USD 28.9 bln.