ICU Research: Liquidity decreases
24 июля 2017
Last Thursday, there was a liquidity outflow, mostly via Treasury operations, mainly due to an increase in tax payments as the Treasury received UAH1.38bn more in revenues than the day before. However, as budget expenditures were lower than the previous day, the total impact of Treasury operations was UAH1.81bn. Cash and other non-monetary operations also had a negative impact on liquidity, and the total impact of non-monetary operations amounted to UAH2.23bn. As the NBU held no monetary operations which could have a further impact on liquidity, banking sector liquidity slid UAH2.23bn to UAH97.22bn.
Meanwhile, banks increased purchases of CDs. Of the UAH4.68bn decline in banks' correspondent accounts with the NBU, UAH2.45bn was invested in new CDs, in addition to refinancing repayments. UAH2.97bn of 14-day CDs were purchased, with no redemptions of that maturity, while the NBU redeemed only ON CDs.
Investment implications: Month-end tax payments began last Thursday, putting additional pressure on liquidity. Lower expenditures and a lack of inflows from the NBU added to this, and the VAT refund amounted to only UAH0.25b on Thursday. The Treasury appears to have accumulated funds for future repayments.
Организация — ICU