Central bank official rates of banking metals as of August 08
One troy ounce=31.10 grams
The depositary of the National Bank of Ukraine resumes operations with government securities following a similar decision made by the specialized regulator of capital markets – the National Commission for Securities and Stock Market (NSSM).
“The resumption of circulation of government securities as the main investment instrument by capital market participants will provide an additional resource for economic recovery. The resumption of operations with these securities will also allow financial institutions to determine their market value,” the National Bank said in a press release on Sunday.
The NBU clarified that, despite the absence of restrictions on transactions with government securities, it has postponed the application of tariffs for depository services until December 22, 2022.
“This step will allow capital market participants to gradually adapt their business processes to new conditions in the financial markets. As before, the depository of the National Bank urges its clients to minimize and, if possible, cancel tariffs for depositary services for their clients during the absence of tariffs of the NBU depository in order to attract additional investments to support the country’s financial front,” the regulator stressed.
He clarified that these changes were approved by the Resolution of the NBU Board dated August 6, 2022 No. 173 “On the non-application of tariffs for depositary services provided by the NBU, as well as for services for accounting and circulation of NBU certificates of deposit and invalidating certain regulatory legal acts of the NBU” which came into effect on 7 August.
As reported, on August 4, the National Securities and Stock Market Commission adopted decision No. 1053, by which it canceled almost all restrictions imposed with the start of a full-scale Russian invasion on work in the capital and commodity markets.
“The step to unblock the capital and commodity markets is timely and balanced, because market participants have confirmed their readiness for the development of the financial sector,” Prime Minister Denis Shmihal was quoted in a statement by the National Securities and Stock Market.
Leading stock exchanges have already announced the restoration of trading in all securities since August 8.
According to the decision of the National Securities and Stock Market Commission, the bans remain in relation to transactions related to individuals and legal entities of the Russian Federation and Belarus. In addition, settlements on the second part of the REPO operation under REPO agreements concluded before the start of the war, as well as applications for redemption from participants in joint investment institutions of open and interval type, are allowed only from August 22, and for earlier transactions, permission from the Commission is required.
At the same time, according to market participants, the activation of the secondary government bonds market may lead to an increase in bond rates, which will create some problems for the Ministry of Finance, which so far refuses to significantly increase them following the decision of the National Bank in early June to raise the discount rate from 10% to 25%. Only at the last few auctions, the Ministry of Finance raised the yield of securities maturing in a year or two to 14-16% per annum.
The flow to enter Ukraine through its western border for the week from July 30 to August 5 amounted to about 304 thousand, while to exit – about 283 thousand, compared to last week, both indicators increased by 8%, reports State Border Service on Facebook.
As a result, net inflows into the country increased to about 21,000 from about 19,000 a week ago, according to its data.
The number of cars passing through the border increased by 9% to about 130,000 in a week, while the number of vehicles with humanitarian cargo cleared by 4% to 447.
Such data is confirmed by the Polish border service. According to her, from July 30 to August 5, 167 thousand entered Poland from Ukraine (a week earlier – 162 thousand), while from Poland to Ukraine – 191 thousand (173 thousand).
In general, since the beginning of the war, 5.297 million have arrived in Poland from Ukraine, while in the opposite direction – 3.409 million.
According to the State Border Service, the flow to enter Ukraine is more than the flow to exit on Saturday-Tuesday, while in the opposite direction – on Wednesday-Thursday.
As reported, since May 10, the flow to enter Ukraine through its western border has steadily exceeded the flow to exit for almost a month. Net inflow during this time amounted to 188 thousand. In the following weeks, there was no such unambiguous trend, and net inflow over the next two months decreased to 81 thousand.
According to UNHCR data, as of August 2, a total of 10.35 million people have left Ukraine since the beginning of the war (excluding entry flow), of which 5.106 million went to Poland, 1.968 million to Russia, 1.089 million to Hungary, 964 to Romania, 9 thousand, Slovakia – 648.5 thousand, Moldova – 557.2 thousand, Belarus – 16.7 thousand.
At the same time, according to the UN, from February 28 to August 2 July, 4.272 million people entered Ukraine (excluding data from Hungary, the Russian Federation and Belarus).
American actress Jessica Chastain arrived in Kyiv on Sunday, where she visited the Okhmatdet children’s hospital, Suspilnoye reports, citing its own correspondents.
It is noted that in addition to a visit to the hospital, Chastain also plans to travel to Irpen, as well as meet with President of Ukraine Volodymyr Zelensky and head of the President’s Office Andriy Yermak.
Jessica Chastain is an American actress and producer. Known for roles in the TV series “Dark Shadows”, the films “Interstellar”, “The Martian”, “Crimson Peak”, “People Isk: Dark Phoenix”, “Eyes of Tammy Fay” and others. She has already spoken publicly in support of Ukraine in connection with the invasion RF.
In 2012, the actress was included in Time magazine’s annual list of the 100 most influential people of the year. Chastain won an Oscar in 2022 for her performance as Tammy Faye in The Eyes of Tammy Faye.
The Cabinet of Ministers of Ukraine has approved a draft presidential decree on the confiscation of 903 objects that belong to the Russian state, Prime Minister Denys Shmygal said.
“As promised, we are taking Russian assets for the benefit of Ukraine and the Ukrainian people. We are doing this systematically in accordance with all procedures. We do not replace the law with our desire, but we are implementing this strategic task in a legal way. The confiscated assets are converted into funds used for our defense and restoration,” Shmyhal said at a government meeting on Friday.
According to the prime minister, the government has decided to confiscate Russian property and assets in Ukraine. In particular, a draft presidential decree was approved, which proposes the confiscation of 903 objects that belong to the Russian state.
According to Shmyhal, 79 items are corporate rights, 824 items are property.
“The list of objects has been formed: these are hundreds of buildings, corporate rights, land plots and financial assets. All property is divided into three categories: the first is property that belongs to the Russian state, the second is assets that belong to sanctioned citizens and companies from Russia, the third are the assets of Russian banks,” he added.
The Prime Minister stressed that such a decision is the first step, followed by the confiscation of Russia’s assets in the West.
As of August 1, 2022, according to preliminary data, Ukraine’s international reserves amounted to $22.385 billion (in equivalent), which is 1.6% or $371.5 million less than at the beginning of July, the National Bank of Ukraine (NBU) said on Friday.
“They declined… given the National Bank’s interventions and payments on the state’s domestic foreign exchange obligations, which were largely offset by foreign currency borrowings in favor of the government,” the NBU said.
As reported, in June, the fall in reserves amounted to 9.3%, or $2.344 billion.
The regulator said that net international reserves last month fell by 2.9%, or $377 million, to $12.574 million, while in June they fell by 13.2%, or $1.97 billion.
The National Bank said that in July the pace of international reserves was affected by the sale of $2.117 billion by the NBU in the foreign exchange market, but at the same time, the purchase into reserves after the devaluation of the official rate on July 21 by 25% reached $922.0 million, which reduced the negative balance to $1.195 billion.
“From July 22 until the end of the month, a net supply of $40 million to $70 million per day was recorded daily on the interbank foreign exchange market,” the NBU said.
The NBU added that foreign currency receipts to the accounts of the government of Ukraine in the National Bank in July amounted to $1.563 billion, including $1.049 billion received from Germany, and $514.0 million from the placement of foreign currency domestic government bonds.
At the same time, the total volume of government payments for servicing and repaying public debt in foreign currency amounted to $677.0 million, including $630 million was sent to service and repay government bonds, and $47 million to settlements with other creditors.
“The current volume of international reserves provides for 3.5 months of Current External Payments (CXP), which is enough to meet the obligations of Ukraine and the current operations of the government and the National Bank,” the NBU said.
As reported, at the beginning of 2022, Ukraine’s international reserves amounted to $30.941 billion, net international reserves (NIR) were $20.767 billion.
