Financial news

Rates on interbank credits in national currency increased by long-term highest marks at DEPO-market

International foreign exchange market. On Monday no strong macroeconomic data either on economics of Europe or the USA were published. At 12:00 KT consumer prices index that showed strong inflation growth was published in Europe. In annual calculation index grew 3,5%. Euro was slightly strengthened after news release as expectations that European Central Bank will not change interest rates in the nearest future were strengthened.

While opening American session stock market of the USA started to grow.

Index of National association of managers on Chicago purchases that shows level of business activity in industrial center of the USA increased on March 2008 by 48,2 points with 44,5 months before.

Technical analysis of time schedules shows that rates of European currencies will grow against US dollar in short-term perspective.

Current technical levels on the main currency pairs:

At Ukrainian interbank foreign exchange market situation is stable: many days already US dollar fluctuates near the mark in 5,00/$1. During today session US dollar fluctuates within 4,99/5,01, during majority of bids, being at the range of 4,995/5,005. Currency offer is today at the sufficient level due to two reasons: due date of some payments to budget expires today, and also deficiency escalation of UAH resources in connection with reporting date is observed.

Majority of bargains was concluded today by market participants within 4,996/5,000 per $1 .

At DEPO-market, interbank credits rates in national currency grew to their long time highs having amounted by the end of the day to 22,0/30,0% p.a. This sharp rise of credit price is caused by the hryvnia resources deficit which especially aggravated on reporting date despite balance rise at correspondent accounts of commercial banks at the NBU by 0,5 b up to UAH 16,421 b. It is logical that after today bids closure many banks applied to the NBU for refinancing. The NBU will probably provide the banks with refinancing for the amount of no less than UAH 0,7-1,0 b.

Overnight credits rates increase constitutes today up to 500% in comparison with previous day. Taking into account that on Friday rates constituted 4,0/7,0%, today they fluctuated within the range of 12,0/30,0% p.a. Weighted average price of concluded bargains by 17:00 KT constituted 18,1%, with 6,0% a day earlier. Concluded deals volume by this time constituted in total 1,837 b, with UAH 4,465 a day earlier.

Credits for a period "from 2 to 7 days" also rise in price. Rates on these credits constitute today 15,5/20,7%, with 13,0/17,0% a day earlier.  That is to say, weighted average price rose up to the mark of 18,4% from 14,2% on Friday.

Rates on credits for a period "from 22 to 31 days" fluctuate today within the range of 17,0/18,0%, with 10,0/15,0% a day earlier.

Credits price increase did not bypass the currency. Thus, dollar overnight credits price constitutes today 5,0/10,0%, with 5,0/7,0% p.a. a day earlier, euro credits -  4,5/7,0% and 4,25/5,5% respectively. 

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

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