Financial news

Hryvnia liquidity saturation still present at the DEPO-market

International foreign exchange market. The US dollar corrected its positions today after two days growth. The Euro growth is caused by publication of information on GDP in the Eurozone which increased by 0.7% in the first quarter 2008 against the previous quarter and by 2.1% against the analogical period in last year. Jean-Claude Trichet held today a brief for continuation of ECB's policy in the direction of rate increase. He said price stability risks in short term perspective are increasing and it is necessary to decrease such risks.

In the afternoon news came that oil reserves in the USA decreased in the course of the last week by 5.9 m barrels -to 293.9 m. Analysts predicted decrease by 1.9 m.

Technical levels on main currency pairs as of 17:23 КТ:

At the Ukrainian interbank foreign exchange market, moderate demand for the US dollars on Wednesday allowed to retain quotations of the US currency above the mark of 4,60/$1. Demand and supply were today perfectly balanced which is proved by the fact of quotations fluctuation in the course of the whole session in a comparatively narrow range — approximately  4.59/4.62 per $1. The major portion of transactions was concluded today by market participants at 4.60/4.61, with 4,60/4,62 per $1 a day earlier. But by the end of the week the hryvnia is likely to strengthen its position below the mark of 4.60 per $1.

The DEPO-market is still characterized by hryvnia liquidity saturation which is shown in interbank credits rates. Despite the NBU's efforts to "bind" a portion of liquidity by the way of selling its own certificates, supply in the market is still sufficiently high.

Despite the fact that overnight rates in UAH keep on fluctuating within the range of 2.0/10.0%, weighted average price on actually concluded transactions decreased by 0.7% — to 4.5%.

The volume of transactions by 17.00 KT rose and amounted to UAH 2.72 bn, while according to previous day's results trading volume was UAH 2.99 bn.

Rates on credits for a period "from 2 to 7 days" decreased today even more: today they changed within 6.6/11.3%, with 9.0/13.0% p.a. on Tuesday. Weighted average price on actually concluded transactions dropped at this to 9.1% from 10.8% at bids on Tuesday. The volume of performed operations reduced almost twice — to 120 m from 210 m at previous bids.

Rates on credits for a period "from 22 to 31 days" are today within the limits of 16.0/18.0%, with 12.0/20.0% on the previous day.

Comments by S.N.KRAMAROVA, Head of the Treasury, PRAVEX-BANK

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