The NBU announced tens of billions of extra money from Ukrainian banks
In 2016, the National Bank of Ukraine bought $1,6 billion from the market, thanks to which about UAH 45 billion of new money appeared in the banking system.
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This was announced by Deputy Chairman of the National Bank Dmitry Sologub in an interview with the industry publication FinClub.
“We live in a situation of structural liquidity: banks have a lot of money. People think that if banks start lending aggressively, structural liquidity will disappear. No, it will not disappear,” Sologub said.
According to him, when a bank removes liquidity from NBU certificates of deposit and issues a loan to a company, then through several chains the money ends up in another bank, which invests it in NBU certificates of deposit.
“Structural liquidity has not changed. Liquidity in countries like Ukraine is determined by capital inflows. Last year we bought $1,6 billion from the market. Accordingly, about 45 billion UAH appeared in the banking system,” Sologub said.
Let us recall that at the end of March 2017, Ukraine’s national debt amounted to UAH 1,951 trillion or $72,35 billion, which is 0,8% more than at the end of February this year in dollar terms.
The National Bank of Ukraine (NBU) announced that Ukrainian banks have tens of billions in excess cash.