Beginning next week, the National Bank of Ukraine suspends tenders on placement of certificates of deposit with a three-month maturity. The central bank has held these tenders on a weekly basis since June 2015. Going forward, the NBU will continue to hold tenders on placement of other instruments with shorter maturities at the previous periodicity, including tenders on placement of certificates of deposit with a one-month maturity, 14-day maturity, a one-week maturity, as well as overnight tenders on a weekly basis.
The NBU made a decision to suspend such tenders as the Ministry of Finance of Ukraine returned to the local sovereign bond market. In January, the Ministry of Finance of Ukraine resumed the issuance of short-term and mid-term domestic sovereign bonds with a six-month maturity. In February, the Ministry of Finance of Ukraine is to resume the issuance of domestic sovereign bonds with a three-month maturity. The primary placement auction for domestic sovereign bonds with a three-month maturity, which are due on 11 May 2016, has been scheduled by the Ministry of Finance of Ukraine for 9 February 2016. The Ministry of Finance last floated domestic sovereign bonds with a three-month maturity in January 2015.
“The issuance of domestic sovereign bonds with maturities of more than three months is a necessary instrument for implementing the NBU’s monetary policy,” said NBU Deputy Governor Oleh Churii.