Banking sector liquidity slid only UAH0.48bn to UAH81.92bn yesterday as banks' correspondent accounts with the NBU decline UAH0.43bn to UAH40.88bn and total CDs outstanding was down UAH0.05bn to UAH41.04bn.
Investment implications: Liquidity declined slightly at the end of last week despite a sizeable UAH4.5bn in tax revenues and less significant inflows of UAH0.76bn via the FX auction. Most likely, the MoF accelerated paying budget expenditures after receiving UAH10bn from the NBU and the significant tax revenues collected last week. The result could be a less significant increase in the state treasury account compared with the beginning of October, which will be reported today.
ICU is an asset management and investmnet banking company.