Consumer inflation in Ukraine accelerated to 22% YoY in June from 18% YoY in May with the food inflation reaching 28% YoY while the fuel inflation skyrocketing to 91% YoY.
The National Bank reported that its foreign currency reserves decreased by 9% in June to USD 22.8bn. The FX reserves were mainly used to sell the hard currency in the amount of about USD 4 bn on the interbank market to cover a lack of sufficient FX supply from the exporters. Also, the regulator admitted that it tried to prop up the national currency to smooth the devaluation trend amid the country’s economic difficulties caused by the russian military invasion.
Ukrainian equities listed in London and Warsaw were notably lower again over the week. Sunflower oil and grain exporter Kernel (KER) dropped by 2.8% last week to close at PLN 19.10 and poultry maker MHP (MHPC) plunged by 15% to USD 3.70. Ukraine is holding talks with Turkey and the United Nations to secure guarantees for grain exports from the Black Sea ports. Ukraine, one of the world’s leading grain exporters, has a problem with the russian army blocking the movement of ships from Ukraine. There are 22 mn tonnes of grain stacking at the moment in storage with a further harvest of about 60 mn tonnes expected in the autumn.
On the Ukrainian stock market trading in stocks and bonds remained suspended as the country is under martial law.
The hryvnia devalued by 2.8% to 36.5 UAH/USD on the OTC cash market. The official exchange rate remained frozen at 29.25 UAH/USD.
POLITICS AND ECONOMICS
- Zelenskiy Focused on Recapturing Southern Coastal Territory
- Ukraine Pumps 11bn cu-m of Natural Gas into Storage. The Country Aiming to Accumulate at Least 15bn cu-m of Gas Ahead of Winter Season
The National Bank of Ukraine has opened a special fundraising account to support the Armed Forces of Ukraine. Please find more at the National Bank’s official website under the link below:
The National Bank also opened fundraising account for Humanitarian Assistance to Ukrainians. Please see details under the link below: