National Bank of Ukraine Fully Meets Domestic Cash Demand

National Bank of Ukraine Fully Meets Domestic Demand For Cash

Kyiv, August 20 - The National Bank of Ukraine is committed to developing cashless payments. At the same, cash is needed for retail payments. The growing demand for cash is fully met.

As of 1 July 2013, banknotes and coins in circulation (outside banks and the cash in bank pay desks) amounted to UAH 241.9 billion, which was by UAH 19.1 billion more than the figure recorded at the start of the year.

"This is a clear indication that the public has confidence in the national currency and cash remains an important instrument of retail payments," noted Deputy Governor of the National Bank of UkraineViraRychakivska. "Demand for cashhryvniafrom economic agents has been driven by two underlying processes. Firstly, public demand for cash foreign currency demand has fallen sharply. As a consequence, cashhryvniais no longer channeled to the foreign exchange market. Secondly, household income continues tofollow an upward trend, with real wages having risen by 9.6% in the first half of 2013. This has led to an increase of 11.2% in turnover of retail sales in the first half of the year and driven demand for cash required to handle cash payments," she added.

The first half of 2013 saw an increase in the cash flow (turnover of cash through the bank pay desks), both in terms of receipts and disbursements. The cash receipts amounted to UAH 699.9 billion, which was by UAH 55.8 billion or 8.7% more than in the respective period of 2012. In the January to June period, cashdisbursements reached UAH 716.5 billion, which was by UAH 64.9 billion more than in the respective period of the previous year.

As of 1 July 2013, banknotes of 100, 200 and 1hryvniaface value accounted for the largest portion of banknotes in circulation, standing at 18.2%, 17,5%, and 14.9%respectively.

"The total number of banknotes per capita stands at 59 pieces, which is by 2 pieces more than at the start of the year," said Ms.Vira Rychakivska.

With regard to the coins in circulation, coins of 10 and 1 kop.accountedfor the largest portion of coins, making 28.1% and 21.9% respectively. The total number of small coins per capita stands at 230 pieces, which is by 8 pieces more than at the start of the year.

ENDS

© Scoop Media