Deposit-taking corporations survey

Monetary aggregate M3

In May 2012, the money supply reduced due to a decrease in national currency transferable deposits and foreign currency other deposits. At the same time, national currency other deposits and foreign currency transferable deposits showed an increase. The year on year growth rates of the monetary aggregate M3 remained at the level of the previous month. Internal credit reduced chiefly owing to a reduction in claims on NFCs.

As of the end of May 2012, balances of the monetary aggregate M3 declined by 0.4% to UAH 701.1 billion. Within the month, the money supply dropped by UAH 2.6 billion chiefly due to a reduction in national currency transferable deposits and foreign currency other deposits. The year on year growth rates of the money supply remained at the level of the previous month, making up 10.2%. In May, the increase in cash in circulation outside deposit-taking corporations (M0) continued; nevertheless, it slowed down as compared to April. Within the month, its balance went up by UAH 0.3 billion to UAH 194.8 billion. Within the total money supply, the portion of the monetary aggregate M0 grew by 0.2 p.p. to 27.8%.

In May, the year on year growth rates of the money supply grew to 5.5% versus 5.0% in May. Within May, the monetary aggregate M1 went down by 0.7% against its 2.3% increase in the previous month. Its dynamics were caused by a decrease in national currency transferable deposits (by 2.1% or by UAH 2.5 billion). The year on year growth rates of the monetary aggregate M1 speeded up to 4.3% versus 3.5% in April.

In May, the monetary aggregate M2 went down by 0.3% or by UAH 2.0 billion to UAH 694.9 billion at the expense of both changes in the monetary aggregate M1 and the UAH 1.1 billion decrease in foreign currency other deposits. Within the month, foreign currency transferable deposits grew by 0.4% or by UAH 0.2 billion. In May, the year on year growth rates of the monetary aggregate M2 made up 9.8% versus 9.7% in April.

At the end of May 2012, the monetary base totaled UAH 237.0 billion. Its increment made up 0.1% or UAH 0.2 billion at the expense of an increase in cash issued in circulation (by 0.4% or by UAH 0.8 billion).

At the end of the reporting month, balances of cash issued in circulation came to UAH 213.0 billion. At the same time, NBU liabilities to other deposit-taking corporations not included in the monetary aggregate M3 reduced by 2.6%. The year on year growth rates of the money supply speeded up from 3.2% in April to 4.0% in May.

In May, funds in banks' correspondent accounts reduced by 5.5% to UAH 16.2 billion. Compulsory reserves formed in May by banks came to UAH 15.7 billion; out of them, UAH 6.7 billion were transferred to the separate account with the NBU. In May, the National Bank of Ukraine continued to carry out operations on banks refinancing. In the reporting month, they totaled UAH 3.7 billion. Within the month, the average weighted interest rate on refinancing operations totaled 8.0% p.a. (in April, 8.6% p.a.).

In May, the volume of operations on mobilization of banks' funds totaled UAH 6.3 billion. The average weighted interest rate on mobilization operations made up 3.0% (in April, 2.5% p.a.). Besides that, in May, the National Bank of Ukraine purchased government bonds of Ukraine to the amount of UAH 0.4 billion (at par value). Transactions on sale of government bonds from the NBU portfolio and sale/purchase of government bonds of Ukraine through the bilateral quoting mechanism were not carried out.