Ukraine's money supply grows 9.1%, monetary base 14.5% in H1

MOSCOW. July 13 (Interfax) - The M3 money supply in Ukraine rose 2.6% in June to UAH 2.73 trillion, Ukrainian media quoted the National Bank of Ukraine as saying.

Money supply had grown 2.6% in May.

Deposit growth quickened from1.9% in May to 2.8% in June, the increase driven by hryvnia deposits, which rose 3.2% in May and another 3.7% in June to UAH 1.376 trillion.

Foreign currency deposits fell UAH 0.6 billion in May but rose 1% in June to the equivalent of UAH 688.6 billion.

M0 money supply, which is cash outside banks, grew 0.7% in May and another 2.3% in June to UAH 664.2 billion, returning roughly to the same level as the beginning of 2023.

The monetary base was UAH 907.5 billion in June. Growth slowed to 1.6% in June after quickening to 3.1% in May as there was no increase in required reserve ratios in June.

Cash at banks edged up by UAH 1.1 billion to UAH 46.7 billion.

Banks reduced investments in deposit certificates by UAH 1 billion in May but raised then 12% or UAH 51.5 billion to UAH 478.9 billion in June.

Loans fell UAH 0.3 billion during June: hryvnia loans grew for the first time since May 2022, by 0.2% to UAH 694.2 billion but FX loans continued to fall, decreasing by 0.7% UAH 243.8 billion.

The M3 money supply rose 9.1% and the monetary base 14.5% in January-June as a whole. Cash outside banks fell 0.3%.

Deposits grew 12.6% in 6M, with hryvnia deposits up 14.3% and FX up 9.3%, while loans fell 5.2%, with hryvnia loans down 4.1% and FX loans down 8.2%.

Ukraine's money supply grew 21% or UAH 435.2 billion in 2022 after rising 12% in 2021. The monetary base rose 19.6% in 2022 after growing 11.2% in 2021.