OREANDA-NEWS. A lot of misleading information about the amount of money issued by the central bank has recently been published in the mass media. It should be stressed that the National Bank of Ukraine publishes data on the monetary base that reflect the amount of hryvnia issued into circulation on a monthly basis. This information is posted in the "Key Developments in the Ukrainian Money Market" section of the National Bank of Ukraine's official website.

The monetary base (the amount of money issued by the National Bank of Ukraine and is in circulation as of November 27, 2014) amounts to UAH 330.5 billion. This amount has been accumulated over the period of more than twenty years of Ukraine's existence as an independent state.

The issue of money in Ukraine is strictly regulated. The creation of money by the National Bank of Ukraine is carried out in non-cash form only by crediting the corresponding amounts to banks' correspondent accounts with the National Bank of Ukraine. Conversely, when money is withdrawn from circulation, the corresponding amount is debited from these accounts. Cash is issued into circulation or withdrawn from circulation solely in exchange for cashless funds. The conversion of cashless funds into cash funds and vice versa has no effect on the total amount of money in circulation. It should be noted that not all the funds issued are virtually in circulation at a certain point in time. A portion of issued funds is withdrawn from circulation by the National Bank of Ukraine through mobilization operations as part of money market regulation. A portion of funds is accumulated on the Government's accounts with the National bank of Ukraine.

The amount of funds available to the economy is reflected in the monetary base (base money). This indicator comprises national currency funds held on banks' correspondent accounts with the National Bank of Ukraine, including cash in vault of commercial banks and domestic currency outside banks. As of November 27, 2014, the monetary base has expanded by UAH 23.4 billion year-to-date, or by 7.6%.

Monetary base growth is strictly controlled, in particular, as part of commitments undertaken under the IMF-supported Stand-By Arrangement. It is also controlled by the National Bank of Ukraine Council as part of the implementation of the Monetary Policy Fundamentals.