The balance of government funds on a single treasury account (CEN) at the beginning of December increased to 54.1 billion UAH. This is by 11.4%, or by 5.5 billion UAH more than it was a month ago. This is evidenced by the data of the State Treasury Service of Ukraine. The amount of funds is also almost twice as much as it was a year ago, when the balances on the single account amounted to UAH 27.6 billion. It should be noted that since the beginning of autumn the Cabinet has kept on its accounts the amount of funds close to the historic maximum. Most of the funds - about two thirds - come from local budgets. Earlier, the Council of the National Bank of Ukraine (NBU) warned of the risks to the stability of the hryvnia exchange rate due to the formation of significant amounts of funds on government accounts and liquidity in the banking system. The Council of the National Bank also noted the need to strengthen coordination of monetary and budgetary policies in order to prevent a sharp increase in inflation risks.

"Such volumes of liquidity indicate the formation of a" monetary overhang ", which is concentrated in the banking system and the public sector. Given the current state of the monetary market, spending by the government for a short period of time, as traditionally happened at the end of the year, may have more significant risks for the stability of the monetary unit of Ukraine than in previous years, "the NBU Council.

Original article: Pressure on the course: the Cabinet has accumulated a huge amount of funds on its account.