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Required reserves of banks more than doubled to UAH 144 bln – NBU
KYIV. Jan 16 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) has announced a new amount of required reserves for banks worth UAH 144.1 billion for the period from January 11 to February 10.
According to the NBU website, this is 106.5%, or UAH 74.3 billion, more than in the previous period, and is associated with an increase in the required reserve ratio for current accounts (demand deposits) in hryvnia announced on December 8 from January 11 and in foreign currency by 5 percentage points (p.p.), respectively up to 5% and 15%.
The National Bank also allowed to cover up to 50% of the total required reserves at the expense of benchmark government bonds, which means a limit on their purchase against reserves of UAH 72 billion for the period until February 10.
According to the NBU, the amount of funds on relevant accounts of banks on January 11, when new increased reserve requirements began to operate, increased to UAH 140.6 billion from UAH 73.5 billion the day before. However, by January 16, it fell to UAH 121.4 billion, and the volume of purchases of certificates of deposit decreased from about UAH 445 billion daily to UAH 380 billion.
During this time, the National Bank has established only one issue of benchmark government bonds, with ISIN UA4000227045 and maturity on August 7, 2024. At auctions on January 3 and 10, the Finance Ministry placed these securities for about UAH 21.6 billion at 19.25% per annum, while demand exceeded UAH 50 billion.
In the announcement of the next auction on January 17, this issue is not yet available, while there are issues maturing in February and October 2024, which the Ministry of Finance also considers benchmarks, but there is no similar decision of the National Bank on them.
