**New Strategy: MoF Changes Bond Offerings**
The Ministry of Finance (MoF) in Ukraine recently made significant changes to its bond offerings, pausing the offering of two and three-year UAH bonds despite high demand. Last week, the MoF borrowed around UAH30 billion, with the largest demand seen for reserve bonds. Interest rates for reserve bonds dropped due to oversubscription, leading to strategic adjustments by the MoF.
Moving forward, the MoF will offer three types of military bills with various maturities, regular notes, and US dollar-denominated bills. Additionally, the secondary bond market turnover decreased while FX-denominated bills saw an increase. The National Bank of Ukraine also had to increase interventions to maintain stability in the hryvnia exchange rate.
Overall, the strategic decisions made by the MoF and the NBU indicate a proactive approach to financial stability amidst economic challenges. By adapting their offerings and interventions, both institutions are working towards achieving stability and meeting financial targets. The future implications of these strategies remain to be seen as the economic landscape continues to evolve.
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