OREANDA-NEWS. The money supply in Ukraine (M3) rose by 1.9% in October (6% in September) and by 35.9% over 10M2007 (33.6% over 9M2007) to USD 70.6bn. At the same time, M0 increased by 2.2% in October (5.3% in September) and by 32% over 10M2007 (29.1% over 9M2007), amounting to 27.9% of the total money supply in October (27.5% in January). The credit portfolio of banks rose by 55.5% (52.2% over 9M2007). The international reserves of the National Bank of Ukraine (NBU) increased by 3.6% in October (6% in September) and by 41.8% over 10M2007 (36.9% over 9M2007) to USD 31.7bn. In particular, NBU's net interventions stood at USD 0.4bn in currency on the interbank currency market in October (USD 0.8bn in September).

The figures released support Millennium Capital's experts expectations of an increase in the NBU's international reserves, reflecting the substantial inflow of foreign capital into Ukraine in an amount that is more than needed to fully compensate for the negative current account deficit and support appreciation of the grivna. The lower growth of money supply, particularly at a rate half that of the September cash amount growth, could contribute to a lower inflation in October.