This Monday, non-monetary operations supported a slight recovery in liquidity, which was up UAH0.48bn to UAH100.45bn, but with additional reallocation of funds from CDs to banks' accounts. At Monday's tender, banks decreased purchases of new CDs by UAH3.45bn, mostly at ON maturity. These funds were accumulated in banks' correspondent accounts with the NBU, which were up UAH3.93bn to UAH46.89bn.
The Treasury increased its expenditures over collected revenues by UAH0.92bn, and compensated for the outflow via a decline in cash of UAH0.44bn, which caused a positive impact on non-monetary operations, mentioned above. NBU did not hold monetary operations on Monday.
Investment implications: Liquidity remains slightly volatile at around UAH100bn, and probably will not move significantly. The amount of free liquidity in banks will remain dependent on Treasury operations, as well as NBU monetary operations.
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