Inflation in Ukraine continues its retreat. In April 2023, consumer inflation in Ukraine decreased to 17.9% in annual terms. According to the NBU’s estimates, the slowdown in price growth continued in May as well, according to the June Ma... #InflationinUkraine #nbu #UkraineEconomy
The growing labor shortage in Ukraine has stopped the fall in wages. As of June 2023, the real wages of Ukrainians in the private sector have stopped decreasing due to increased competition for employees. According to the June Macroeconomic and Monetary Review from the... #JobInUkraine #LaborMarket #nbu #SalaryUkraine #UkraineJobmarket
Ukraine’s international reserves have increased to an 11-year high. They currently stand at $37.3B, the highest figure since August 2011. The National Bank explained that the reserves grew due to steady inflows from Ukraine’s international partners, which exceeded the... #CurrencySale #financialaidforUkraine #nbu #UkraineInternationalReservs
The NBU continues to increase the sale of foreign currency, and Ukrainians are buying fewer dollars. The net sale of dollars by the National Bank from May 29 to June 2 rose to $457.02M. According to the regulator, the bank bought only $11.93M last week and sold $468.95M. In May, the central bank incr... #currencyexchange #CurrencySale #foreigncurrency #nbu
Bankers positively assess the further development of Ukraine’s financial sector, but corruption has returned as a main risk. A majority of the top managers of banks and non-bank financial institutions surveyed by the NBU reported an improvement in the state of the financial sector over the last six months, with 57% against ... #BusinessExpectation #financeUkraine #FinancialSectorUkraine #nbu #UkrainianBanking
The NBU says that interest rates on deposits will continue to rise. The head of the National Bank of Ukraine, Andriy Pyshnyi, announced this forecast, noting that the projected discount rate will be higher than the current level of banks’ deposit rates for a lon... #AndriiPyshnyi #DepositsInterestRate #nbu #UkraineDeposits
The NBU will discuss easing currency restrictions with the IMF. On May 23, the IMF mission began preparations for the first review of the EFF program with Ukraine. The National Bank said that during negotiations special attention will be paid to the gradual easing... #CurrencyRestrictions #EFFprogram #IMFprogramm #nbu
The Central Bank of Ukraine has presented a new strategy to maintain financial stability. The NBU has developed a new institutional strategy, Financial Fortress of Ukraine, which considers the influencing factors of the Russian invasion on the functioning of the financial system and is foc... #FinancialStabilityUkraine #nbu #UkraineFinancials
The yield on deposits is growing, and loan rates have stabilized. Ukrainian banks continue to compete for clients’ funds, raising deposit rates for both individuals and businesses, the NBU Banking Sector Survey notes. On average, the value of 12-month deposits... #BankDepositsinUkraine #BankLoans #nbu #UkrainianBanks
The Ukrainian government will ease restrictions for businesses. According to EBA, the NBU currently understands that currency restrictions are gradually exhausting their function, and the macroeconomic situation in the country is stabilizing. Because of this, the ... #CurrencyLiberalization #EBA #nbu #ReformsinUkraine #RestrictionsForBusinesses
The NBU is considering the reduction of the key policy rate due to improved FX market conditions. The noticeable improvement of the foreign exchange market has been caused not only by the seasonal increase in the supply of currency by farmers and the decrease in demand for energy imports but also ... #DiscountRateUkraine #foreignexchangemarket #KeyPolicyRate #nbu
Export prices for Ukrainian goods will decrease due to the global increase in inventories. According to NBU estimates, supplies will reach their pre-pandemic level in 2025, that is, at the end of the planning horizon. By the third quarter of 2025, the National Bank predicts a steady decline... #grainexport #nbu #UkraineExport #UkrainianMetalExport
Ukraine’s international reserves have grown to 11-year high. In April, Ukraine’s reserves increased by 12.8%, or $4B, to $35.9B, according to the NBU. The regulator explained that reserves increased due to aid received from international partners, a further dec... #financialaidforUkraine #nbu #UkraineInternationalReservs
Problem loans are accumulating in Ukrainian banks. As of April 1, the share of non-performing loans in bank portfolios was 38.8% and increased by 0.7% during the last quarter. The volume of problem loans amounted to UAH 434B and increased by UAH 2B in... #LoanPortfolio #nbu #NPLukraine #Problemloans
Ukrainians are buying significantly less foreign currency in banks. In April 2023, the population of Ukraine sold $1.3B in cash and non-cash funds to commercial banks and bought $1.5B. According to National Bank data, the net purchase of currency amounted to $224.2M. ... #CurrencyMarket #CurrencySale #foreigncurrency #nbu
For the first time in 1.5 years, Ukrainian business has improved its assessment of its prospects. For the first time since October 2021, the Business Activity Expectations Index rose to 51.5 points in April from 49.5 in March and crossed the neutral level (50 points), according to a study by the N... #BusinessActivityExpectations #businessinukraine #nbu #UkraineEconomy
The Central Bank has reduced the sale of reserves to a minimum due to the fall in demand for foreign currency. In April 2023, the National Bank of Ukraine bought $3.7M on the interbank foreign exchange market and sold $1.374B. The negative balance amounted to $1.37B. According to the regulator, currency sales ... #CurrencySale #foreignexchangemarket #nbu
The Central Bank kept the prime rate at 25% and improved its economic forecast. The Board of the National Bank decided to keep the discount rate at 25% per annum, the Chairman of the Board of the NBU, Andriy Pishniy, said. The NBU noted that the updated macro forecast foresees th... #AndriyPishnyi #InflationinUkraine #nbu #UkraineEconomy
The IMF requests a stability check for the 20 largest banks in Ukraine. The National Bank has started assessing the strength of 20 banks, the leaders in the aggregate of assets, deposits, and individual loans. These bank’s total amount of net assets is more than 90% of th... #BankingStability #nbu #UkrainianBanks
Banks increase lending and ease requirements for borrowers. Banks have significantly improved their expectations regarding the development of lending in Ukraine. In the second quarter bankers predict an increase in demand for retail loans and mortgages most of... #CreditPortfolio #LendingInUkraine #MortgagesUkraine #nbu
By the end of the year, Ukraine’s banks will likely sell over UAH 100B worth of debt at auctions, said the founder of the Investohills group of companies, Andriy Volkov. According to Volkov, banks will have to discount NPLs in order to sell 50-70% of them along with the rest of their portfolios, b... #AndriyVolkov #BankLoans #nbu #NPLukraine
The Central Bank of Ukraine is working on creating an insurance system for military and political risks. The NBU has already prepared an initial concept, which should become the basis for the future draft law, said the First Deputy Head of the Central Bank, Kateryna Rozhkova. She explained that due to th... #KaterynaRozhkova #MilitaryRiskInsurance #nbu
Ukraine’s international reserves have reached the highest level since 2011. In March, Ukraine’s reserves increased by 10.4% to $31.9B, reported the National Bank of Ukraine. The central bank explained that reserves increased because of fund allocations from international part... #financialaidforUkraine #nbu #NBUInternationalReserves
The surplus of food and fuel, the de-occupation of some regions, and the stabilization of the energy system slowed inflation to 22% in March, according to the graph published in the NBU’s Macroeconomic and Monetary Review for April 2023. It is noted that the fundamental inflationary pressure also eased under improving expectations in the co... #InflationinUkraine #nbu #UkraineEconomy
The National Bank of Ukraine will begin diagnostics of banks in April. This year there will be two stages: an asset quality assessment and sustainability of business model analysis, Deputy Head of the NBU Kateryna Rozhkova said. She clarified that the procedure’s p... #KaterynaRozhkova #nbu #UkrainianBanks
The NBU encourages banks to raise interest rates on household deposits. To encourage this, beginning May 11 the National Bank of Ukraine will equate the standards for the formation of mandatory reserves by banks with individual deposits for up to three months to the crite... #BankDepositsinUkraine #InterestRate #nbu
In 2023, the government will pay the NBU more than UAH 80B in bond interest payments. The National Bank of Ukraine expects to receive UAH 81.7B in coupon payments for military bonds purchased from the Ministry of Finance in 2022 if the discount rate remains at 25%, the bank said. From ... #BondsUkraine #GovernmentBondsPayment #nbu
Ukraine has significant demand for dollars, and the foreign exchange market still depends on interventions. This conclusion was reached by the members of the Monetary Policy Committee of the National Bank of Ukraine on March 15, when they decided to keep the discount rate at 25%. It is noted that the high l... #DollarDemand #InflationinUkraine #KeyPolicyRate #nbu
Ukraine’s foreign debts have grown to 90% of GDP, and the balance of payments deficit has increased despite Western aid. Ukraine’s gross foreign debt increased by $2.3B in 2022 and amounted to $132B at the end of last year. Concerning the GDP, the amount of debt increased over the year from 64.6% to 89% of its tot... #foreigndebtsUkraine #nbu #ukrainedebt
Banks in Ukraine can double deposit rates for the public. This will not significantly impact banks, particularly the total cost of funding, according to deputy head of the NBU Kateryna Rozhkova. She notes that in December, hryvnia liabilities in the banking ... #BankDepositsinUkraine #KaterynaRozhkova #nbu
The NBU has received a second international Central Banking Award. Ukraine’s central bank received recognition for Initiative in the field of payment and market infrastructure for its work in developing the state remote identification system, BankID. The system prov... #BankIDukraine #nbu
The National Bank leaves its key policy rate unchanged at 25%. The NBU notes that inflation at the beginning of 2023 is slowing faster than expected but remains high. In February, it declined to 24.9% year-on-year. At the same time, it is noted that the duration ... #InflationinUkraine #KeyPolicyRate #nbu
The NBU is recognized as the regulator of the year by the Central Banking Awards. For the first time, the National Bank of Ukraine received a title and international recognition for its effective work last year in the war-time conditions. The Central Bank of the Year designation is... #nbu #UkraineBankingSystem
The National Bank’s reserves decreased by $1B and total $28.86B. The NBU reports that reserves decreased by 3.5%, or $1.06B, in February due to the sale of foreign currency to cover the difference between supply and demand in the foreign exchange market. In Februar... #BankReserves #nbu #UkraineInternationalReservs
Electronic residents are allowed to open checking accounts in Ukraine. The relevant decision was made by the National Bank of Ukraine. The regulator explained that it had to be done to comply with the provisions of the law regarding the specifics of taxation of the busin... #ElectronicResidents #nbu #UkraineEResidency
Banks’ demand for “reserve” OVDP bonds has allowed the Ministry of Finance to attract UAH 16B to the budget. According to Ministry of Finance data, UAH 61.74M was received from the sale of annual hryvnia bonds at 18.5% per annum. In addition, the Ministry placed bonds with a 20-month maturity for UAH 14.2M a... #BondsUkraine #nbu #OVDPselling
The National Bank is updating its strategy in response to the protracted war. The National Bank of Ukraine has started forming a revised strategy that considers the transition to a “protracted war phase” and the need for further recovery, said the head of the NBU, A... #AndriyPishnyi #nbu #NBUstrategy
Despite the large volume of currency sales in January, Ukraine’s international reserves grew to $30B. According to the National Bank, during the first month of the year, reserves increased by 5% to $29.9B. The National Bank received $4.33B into the government’s currency accounts during the month... #NationalBankReserves #nbu #Ukraineinternationalreserves
The sale of government bonds brought UAH 12.5B to the budget. The Ministry of Finance, on February 7, auctioned domestic state loan bonds worth UAH 12.5B. Almost half – 46% of this issue – consisted of a 2.3-year benchmark OVDP, with which the NBU al... #BondSalesUkraine #nbu #UkraineGovernmentBonds
During the year of war, the share of non-performing loans increased. The share of non-performing loans (NPL) in the banking sector increased to 38% on January 1, 2023, compared to 30% on January 1, 2022. The volume of problem loans increased by UAH 87B over the year to... #LoanPortfolio #nbu #UkraineNonPerformingLoans
The prime rate will not change before the end of the year. Most of the NBU’s Monetary Policy Committee members are considering keeping the discount rate at 25% at least until the first quarter of 2024. However, some board members assume that the key rate redu... #InflationinUkraine #KeyPolicyRate #nbu #UkraineMonetaryPolicy
In January, Ukrainians increased their purchases of foreign currency to a record amount. In January 2023, Ukraine’s population sold cash and non-cash currency to commercial banks for $1.2B and bought $1.8B. The net purchase of currency amounted to $564M. Thus, in January, Ukrainians incre... #CurrencySale #foreignexchangemarket #nbu
The National Bank continues to sell significant amounts of currency from its reserves. During January 2023, the NBU bought $28.5M and sold $3.11B on the interbank foreign exchange market. The negative balance amounted to $3.082B, according to NBU data. Thus, the central bank slightly re... #CurrencySale #foreignexchangemarket #nbu
Ukrainian banks need to form additional mandatory reserves of UAH 73B. The National Bank has increased mandatory reserve requirements for banks for funds on demand and funds on current accounts. The NBU informed financial institutions that from February 11, reserve stand... #nbu #UkraineBankreserves #UkrainianBanks
The NBU’s 2023 GDP growth forecast has decreased from 4% in October to 0.3% in January. The head of the National Bank, Andriy Pyshnyy, explained that the lowered estimate is due to the consequences from energy terrorism and a revision of the primary assumption regarding the duration of s... #AndriiPyshnyi #nbu #UkraineEconomy #UkraineGDPforecast
During the war, NBU Electronic Payment System operations decreased by 20%. In 2022, the National Bank’s electronic payment system (SEP) worked without interruption and satisfied the needs of both the Ukrainian banking system and its customers for payments in the national cur... #ElectronicPaymentSystem #nbu #UkraineBankingSystem
At the end of the year, Ukrainians deposited UAH 47B in banks. The deposit portfolio grew in December, as it had in previous months. According to the National Bank, Ukrainians deposited almost UAH 35.9B into bank accounts. At the end of 2022, the hryvnia portfoli... #HryvniaDeposits #nbu #UkraineDeposits
The expectations of bankers and financial analysts regarding the hryvnia exchange rate and inflation have improved. According to the National Bank of Ukraine, bankers forecast the hryvnia exchange rate over the next 12 months at UAH 42.70/$1. In October, they expected an exchange rate to be slightly higher at UAH 4... #hryvniaexchangerate #InflationinUkraine #nbu
Over the past year, the budget received UAH 164B and more than 3 billion in foreign currency from the sale of OVDP bonds. According to the National Bank of Ukraine, the Ministry of Finance placed UAH 164.385B worth of hryvnia government bonds last year, which is 42.9% less than in the same period of 2021. Also, the gover... #Bondssale #BondsUkraine #nbu
The NBU has called on international banks to withdraw from the Russian market. The National Bank of Ukraine emphasized the impermissibility of international banks’ cooperation with Russia and Belarus and called on them to fulfill their promises and finally withdraw from th... #InternationalBanksInRussia #nbu #RussianMarket
