At August 26 Ministry of Finance primary auction interest in hryvnia-denominated bonds has increased again, their proceeds outweighing those from FX-denominated bonds.
Most of the UAH proceeds came from military government bills, which totalled almost UAH2.9bn, which brought most of the local-currency funds for the budget. In addition, almost UAH1.8bn came from the 1.5 and 3-year hryvnia securities. So, the MoF raised UAH4.8bn from hryvnia instruments.
The budget received less from FX-denominated instruments. Nineteen-month USD-denominated securities collected almost US$390m in demand, but the cap was only US$100m. So, the MoF satisfied 65 out of 69 applications, but a significant number only partially.
In total, the budget received over UAH9bn, which is generally a good result, especially in conditions when UAH instruments compete with FX-denominated instruments. The advantage of UAH borrowing is primarily due to the small supply of foreign exchange instruments.
