Daily Insight-NBU ups RRRs; coking coal supplies in 5M11; government bond auction preview

On 17 June, the central bank said that it adopted a resolution on raising reserve-requirement ratios (RRRs) for local commercial banks. We provide numerical details of the move below. In few words, NBU raised the RRR on short-term foreign currency deposits from businesses and households by 2ppt, from 4% to 6%, while it set a 2% RRR on long-term deposits in foreign currencies. Previously, NBU did not differentiate between these deposits and imposed a 4% RRR on them. Similarly, the NBU raised the RRR on foreign-currency call deposits by 1ppt, to 8%. Zero RRRs on local-currency deposits (both call and term ones) were left intact. Also, the currency differentiation affected the deposits from non-resident financial corporations. Such deposits in UAH have 0% RRRs, while a foreign-currency deposit remains under the 2% RRR.