Ukraine's money supply shrinks 2% in Jan, monetary base grows by 0.2%

MOSCOW. Feb 14 (Interfax) - Ukraine's M3 money supply shrank by 2% month-on-month to UAH3.016 trillion in January in the first decrease since January 2023, Ukrainian media reported, citing the National Bank of Ukraine (NBU).

The figure fell as the deposit portfolio decreased by 2.1% to UAH2.311 trillion, with hryvnia deposits dropping 3.1% to UAH1.577 trillion after growing by 8.7% in December and 3.5% in November.

The monetary base edged up by 0.2% to UAH978.66 billion in January after jumping 5.7% in December, as banks' reserve funds grew by 5.3% to UAH274.55 billion.

Money in circulation outside of banks (M0) fell 1.7% to UAH704.1 billion in January after a seasonal increase of 6.3% in December.

Ukrainian banks' loan portfolio shrank for the first time since July 2023, decreasing by 0.4% to UAH977.99 billion. Forex loans decreased by 2.2% to the equivalent of UAH247.58 billion, while hryvnia loans grew by 0.2% to UAH730.41 billion.

Ukraine's money supply grew by 23% to UAH3.077 trillion in 2023 after expanding by 21% in 2022 and 12% in 2021.

The official exchange rate was UAH37.8951/$1 on February 13.