Page 88 - UKRRptDec23

year. Also, Ukrainians increased the volume of hryvnia deposits in the banking system to ₴461B ($13B in equivalent) - an increase of $5B since the beginning of the year. At the same time, the majority of the increase is not consumer deposits but deposits from businesses (60%). During the 10 months of the year, Ukrainians bought $3.145B in cash and non-cash currency from banks. The purchase volume in October became the highest since February 2014 and amounted to $739.4M. In addition, the amount of currency transfers from abroad for nine months of the year amounted to $8.678B.
Hryvnia deposit profits will change in Ukraine. In November, Ukrainians can expect a drop in interest rates on hryvnia deposits. Interest will be 14-14.5% on average, but the return on deposits may rise to 6-7%, the experts say. This month, the main trends for the hryvnia deposit segment will be:
● The average return on deposits for 3-6 months is 14.5% per annum, and for 9-12 months is 14% per annum
● Increased demand for short-term deposits (up to 65% of all new deposits) due to a relatively short repayment period and high profit
● Net profit growth on hryvnia deposits is up to 6% on deposits for 9-12 months and up to 7% for 3-6 months
● The net profit on hryvnia deposits will exceed the profitability of foreign currency deposits by 100-150%
Therefore, November may be the most favorable for people who decide to put money in a hryvnia deposit. Rates remain high, and net profit exceeds the inflation forecast (5.8%, according to NBU expectations)
88 UKRAINE Country Report December 2023 www.intellinews.com