The money supply (aggregate M3) in Ukraine after growth in June by 2.6% in July added another 2.2%, or UAH 59.5 billion, and reached UAH 2 trillion 788.4 billion, the National Bank said.
According to data on its website, deposit growth in the seventh month of this year slowed to 2.3% from 2.8% in June and was again provided mainly by hryvnia deposits, which, after rising by 3.7% in June, increased by another 3.3% or UAH 45.7 billion in July to UAH 1 trillion 420.2 billion.
Foreign currency deposits, which grew by UAH 6.7 billion in June, increased by only UAH 1.2 billion, or 0.2%, to UAH 690.3 billion (in hryvnia equivalent) in July.
Money in circulation outside banks (M0), after growing by 2.3% in June, added another 1.9% in July to UAH 677.0 billion, exceeding the level of the beginning of this year (UAH 666.1 billion).
The growth of the monetary base (reserve funds) after slowing down in June to 1.6% in July accelerated to 3.9%, amounting to UAH 35.6 billion – up to UAH 943.0 billion. Such dynamics is associated with an increase in July by 9.4%, or by UAH 22.9 billion, in banks’ reserve funds – up to UAH 266.0 billion and by 3.3%, or by UAH 15.7 billion in certificates of deposit – up to UAH 494.6 billion.
The volume of all loans in July increased for the first time in the last 12 months – by 0.5%, or UAH 4.8 billion – to UAH 943.0 billion. In particular, hryvnia loans increased by 0.4% or UAH 2.9 billion to UAH 697.4 billion, while foreign currency loans increased by 0.8% or UAH 1.9 billion to UAH 2457 billion.
Overall, in the first seven months of this year, money supply increased by 11.5%, base – by 19.0%, while money in circulation outside banks – by 1.6%.
Deposits increased by 15.1%, including hryvnia deposits – by 17.9%, foreign currency deposits – by 9.5%, while loans decreased by 4.7%, including hryvnia deposits – by 3.7%, foreign currency deposits – by 7.6%.
As reported, the money supply in Ukraine in 2022 after growth by 12% in 2021 increased by another 21%, or by UAH 435.2 billion.
Deposits for the past year increased by 23.6%, or by UAH 350.8 billion, including hryvnia deposits – by 19.1%, or by UAH 193.9 billion, while foreign currency deposits (in hryvnia equivalent) – by 33.1%, or by UAH 156.9 billion.
The monetary base in 2022 increased by 19.6% compared to 11.2% a year earlier. At the same time, money in circulation outside banks increased by 14.6%, or by UAH 85.1 billion over the year.
The volume of loans in 2022 decreased by 3.8%, or by UAH 39.1 billion. At the same time, hryvnia loans decreased by UAH 13.4 bln, while foreign currency loans decreased by UAH 25.7 bln.
The IMF in the updated in late June materials on the EFF program forecasts growth of the monetary base this year by 25.3%, mass – by 22.0% and reduction of loans to the non-government sector by 12.5%.
The National Bank in its forecast updated at the end of July expects the monetary base to increase by 24.1% this year, the mass – by 19.2%.
