International reserves of Ukraine increased by 5% in January: reasons
[ad_1]
As of February 1, Ukraine’s international reserves amounted to $29.92 billion, which indicates a 5% increase in January, primarily thanks to international aid.
She reported about it press service National Bank.
In January, the dynamics of international reserves were primarily influenced receipts in favor of the government and payments for servicing and repayment of the public debt.
In particular, the government’s foreign currency accounts at the NBU received 4.3 billion dollars: 3.3 billion dollars from the EU, 1 billion dollars from the United States, 71.6 million dollars from the sale of foreign currency government bonds). Receipts from international partners offset the net sale of currency by the National Bank to cover the difference between supply and demand in the foreign exchange market.
Instead, the government paid 65 million dollars for servicing and repayment of the state debt in foreign currency (59.0 million dollars to the World Bank, 5 million dollars – payments on foreign currency bonds, the rest – debt to other international creditors).
Operations of the National Bank also had an impact on the foreign exchange market. In January, the regulator sold $3.1 billion from reserves and bought back $28.5 million from reserves. Therefore, the net sale of currency decreased compared to December 2022 by about 100 million dollars to 3.1 billion dollars.
Such a volume of interventions, which has slightly decreased compared to December, is due to the impact of significant budget expenditures at the end of 2022 on the demand side, and the combination of the seasonal factor (decrease in export revenues at the beginning of the year) and the consequences of a full-scale war on the economic activity of exporters on the supply side.
In addition, the change in the volume of reserves was affected revaluation of financial instruments due to changes in market value and exchange rates. Thus, in January due to revaluation, the value of financial instruments increased by 225.7 million dollars.
The current volume of international reserves provides financing for 3.7 months of future imports
[ad_2]
Original Source Link