The net international reserves of the National Bank of Ukraine (NBU) in April increased by 4.7%, to $16.83 billion after a decrease of 9.4% in March, according to the regulator’s website. According to the report, in general for the four months of 2020, the National Bank’s net international reserves increased by 6.6%, or by $1.04 billion.
As reported, the net purchase of foreign currency by the central bank in the interbank foreign exchange market in April amounted to $678.8 million, while in March it spent $2.2 billion to support the hryvnia.
Net international reserves are calculated as the excess of foreign exchange reserves over the liabilities of the National Bank in foreign currency.
The National Bank of Ukraine (NBU) in April 2020 bought $723.3 million, while sold $44.5 million in the interbank foreign exchange market, while in March it spent $2.2 billion on supporting the hryvnia. According to the NBU, in the period from April 27 to April 30, the regulator bought $115.5 million at a single rate in the interbank market, which is four times more than a week earlier. This week, the central bank was only buying currency.
Most of all, in March the National Bank bought in the interbank market from April 6 to April 10 ($327.7 million), and only that week it sold foreign currency ($44.5 million).
In general, since the beginning of the year, the central bank bought $2.069 billion for reserves and sold $2.793 billion.
This week, the national currency rate in the interbank market strengthened and reached UAH 26.945/$1 on Wednesday, after which it slightly weakened on Thursday to UAH 26.955/$1. Starting from April 2, the hryvnia exchange rate did not fall below the level of UAH 27.5/$1, stabilizing after a rapid fall in March.
The Board of the National Bank of Ukraine has decided to cut the key policy rate from 10% to 8%, the NBU said in a statement on Thursday.
“Together with other measures taken by the NBU, such as expanding its set of liquidity support tools and the introduction of preferential terms for borrowers by banks, this will provide the economy with the impetus required to provide support for households and businesses in these difficult times, and to ensure that business activity picks up quickly once the quarantine is lifted,” the NBU said.
The NBU expects that the key policy rate to be reduced further, to 7% in the current year.
“In deciding how quickly the key policy rate can be decreased to that level, the NBU will take into account how talks with the IMF progress, how the coronavirus pandemic develops, how quickly quarantine measures are lifted, and what anti-crisis measures other governments and central banks adopt,” the central bank said.
The NBU leaves open the possibility of a greater easing in monetary policy if a fall in consumer demand due to quarantine measures and weaker business activity put stronger downward pressure on inflation than is currently expected.
The National Bank of Ukraine (NBU) reduced its property portfolio by 7.7%, to 455,700 square meters in 2019, which allowed saving more than UAH 10 million, according to the NBU’s annual report.
According to the report, to achieve the goals of the NBU’s property management strategy for 2019-2025, it is necessary to reduce the real estate package by another 12.2%, to 400,000 square meters by 21 facilities selling at auction, via privatization and free transfer to other government agencies.
The NBU said that the portfolio was reduced by 34 buildings and structures and six land plots in 2019, at the end of the year it included 409 facilities, namely, some 75 land plots, some 334 buildings and engineering structures.
The National Bank received repayment of debt on non-performing loans of banks and manages 36 land plots with a total area of 112.5 hectares received as debt payment and seven real estate facilities with a total area of 44,700 square meters.
According to the report, the central bank received such property worth UAH 218 million in its ownership in 2019 compared to UAH 85 million in 2018, while its sale as collateral amounted to UAH 181 million and UAH 6 million, respectively.
As reported, in 2019, the National Bank approved the NBU’s property management strategy for 2019-2025, which aims at optimizing the property of the regulator and ensure its effective use.
The NBU’s press service told Interfax-Ukraine that the regulator since 2015 has been disposing property that is not used. Within this period, the central bank transferred 50% of the property to the control of other bodies and ensured its disposal by sale and via privatization, including eight complexes of administrative buildings in the regions, seven social facilities, five garage complexes and a fire station.
“This has saved millions of public funds on the maintenance of property,” the NBU said.
Dynamics of changes in discount rate of National bank of Ukraine
The National Bank of Ukraine (NBU) on December 20 introduced into circulation the upgraded 50-hryvnia bills, as well as 5-hryvnia coins that will gradually replace the respective banknotes, the NBU has reported on its website.
According to the report, first of all, the NBU intends to introduce 5 million of 50–hryvnia banknotes and 5-hryvnia coins. The first batch of means of payment had already been distributed to NBU regional offices.
The NBU has catered to the needs of the public, since customers will not be required to exchange the current 5- and 50-hryvnia bills for new coins and banknotes. No time limits will be imposed on the simultaneous use of new and previous banknotes in payments.
The 5- and 50-hryvnia banknotes of the previous design will be gradually replaced with coins and new banknotes as they wear out. The number of upgraded bills and coins will gradually increase in circulation, depending on the economy’s needs, the bank said.
The NBU said that the introduction of into circulation the upgraded 50-hryvnia bills and 5-hryvnia coins is a part of optimizing and upgrading the banknote and coin series of hryvnia.
Since 2014, the NBU has been upgrading the hryvnia and streamlining cash settlements. Optimization of the banknote and coin series of hryvnia is expected to be completed in 2020 after 200-hryvnia banknotes are introduced into circulation alongside 10-hryvnia coins. Due to comprehensive changes, eventually, the hryvnia series will be optimized to 12 denominations. The new denomination series will have six coins (10 and 50 kopiikas, and 1, 2, 5, and 10 hryvnias) and six banknote denominations (20, 50, 100, 200, 500, and 1,000 hryvnias).
