Money supply (aggregate M3) in Ukraine after growth in May by 1.6% in June added another 2.6%, or by UAH 70.1 billion and reached UAH 2 trillion 729.95 billion, the National Bank said.
According to the data on its website, deposit growth in the sixth month of this year accelerated to 2.8% from 1.9% in May and was provided mainly by hryvnia deposits, which, after growing by 3.2% in May, increased by another 3.7%, or UAH 48.7 billion, to UAH 1 trillion 376.1 billion in June.
Foreign currency deposits, which decreased by 0.6 billion in May, grew by UAH 6.7 billion, or 1.0%, to UAH 688.6 billion (in hryvnia equivalent) in June.
Money in circulation outside banks (M0), after increasing by 0.7% in May, added another 2.3% to UAH 664.2 billion in June, almost returning to the level of the beginning of this year.
The growth of monetary base (reserve funds) after acceleration in May to 3.1% in June slowed down to 1.6%, amounting to UAH 14.0 bln – to UAH 907.5 bln. Such dynamics is associated with the absence of an increase in reserve requirements in June.
In addition, cash in banks’ cash offices increased slightly – by UAH 1.1 bln, to UAH 46.7 mln.
Investments in certificates of deposit, which decreased by UAH 1 billion in May, jumped by UAH 51.5 billion, or 12%, to UAH 478.9 billion in June.
The volume of hryvnia loans in June increased for the first time since May 2022 – so far only by 0.2%, or UAH 1.4 bln – to UAH 694.2 bln. However, due to the continued reduction in foreign currency loans, which amounted to 0.7%, or UAH 1.7 billion – to UAH 243.8 billion in June, in general for the past month, loans again decreased, albeit minimally – by UAH 0.3 billion.
Overall for the first half of this year, the money supply increased by 9.1%, the base – by 14.5%, while money in circulation outside banks decreased by 0.3%.
Deposits increased by 12.6%, including hryvnia deposits by 14.3% and foreign currency deposits by 9.3%, while loans decreased by 5.2%, including hryvnia deposits by 4.1% and foreign currency deposits by 8.2%.
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%.
