Ukraine monetary base jumps 3.2% in April

Ukraine’s monetary base jumped 3.2% m/m (-3.2% YTD) in April after a 1.3% m/m decline in the prior month, the National Bank of Ukraine (NBU) reported on May 12.  The money supply grew 1.3% m/m (-1.2% YTD), the growth same rate as in March.

Alexander Paraschiy: USD 402 mln in foreign currency purchases by the central bank was the main source for monetary base growth in April. Also, the treasury provisionally reported about USD 10 bln of national bank dividends wired to the budget which also should have contributed to the money formation through the month. The developments are in line with our expectations. We anticipate monetary base to keep growing on the back of stronger budget spending and state bonds issuances over the course of the year. We are keeping our projection for monetary base growth at +8.6% YTD for 2017.