ICU: Daily Insight -- Liquidity down slightly

Banking sector liquidity declined UAH0.43bn yesterday, as the result of Tuesdays cashflows in which budget revenues prevailed on expenditures. The net impact of non-monetary transactions was minus UAH0.45bn, but included UAH1.07 of net outflows to the budget which partially was offset by an increase in cash. Banks' correspondent accounts with the NBU slid UAH0.71bn to UAH48.04bn while total CDs outstanding was up UAH0.29bn to UAH48.25bn, causing banking sector liquidity to slide UAH0.43bn to UAH96.29bn. As the result of Tuesday's auction, banks had to pay UAH0.71bn for new bonds yesterday, which should increase pressure on liquidity. With month-end tax payments beginning, liquidity should decline further.