Liquidity reallocated

The post is written by invited author Taras Kotovich, ICU
Liquidity reallocated

Bonds: Liquidity reallocated

After four consecutive days of liquidity declining, yesterday it slightly recovered, up UAH0.21bn to UAH90.67bn, including the usual reallocation of funds. Banks’ correspondent accounts with the NBU fell UAH1.07bn to UAH26.37bn while total CDs outstanding rose UAH1.28bn to UAH64.29bn.

Investment implications: Yesterday’s stability should be short-lived, mostly due to month-end tax payments and slightly lower pressure on liquidity from the FX market. At the same time, banks do not anticipate significant problems with liquidity as they invested significant funds in CDs that mature next month. This Monday, they purchased UAH2.84bn of 14-day CDs that mature on 7 December. Currently, CDs outstanding to be repaid by the NBU in December rose to UAH23.44bn, or 36% of the total outstanding.

Taras Kotovych
Kiev, +38 044 2200120 extn.244
Research Dept, Investment Banking
Investment Capital Ukraine LLC

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