Ukraine’s international reserves broke the 11-year record
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Ukraine’s international reserves increased by 4% in May to a record 11-year high and amounted to $37.31 billion as of June 1.
It is reported press service of the NBU.
The regulator notes that a larger volume than the above was recorded in August 2011.
“International reserves increased due to steady and rhythmic inflows from international partners, which exceeded the net sale of currency by the National Bank and the country’s debt payments in foreign currency,” the National Bank explained.
In general, during May 2023, the dynamics of international reserves were determined receipts for the benefit of the government and payments for the maintenance and repayment of the public debt.
USD 4.32 billion was deposited into the government’s currency accounts at the NBU. From this amount:
- 1.6 billion dollars – macro-financial assistance from the EU;
- 1.25 billion dollars – from the United States (through the World Bank trust fund);
- 1.07 billion dollars – from the placement of currency bonds;
- 383.1 million dollars – from the World Bank.
The Government of Ukraine paid 842.2 million dollars for servicing and repayment of the state debt in foreign currency. In addition, Ukraine paid 195.5 million dollars to the International Monetary Fund.
Reserves were also affected by the operations of the National Bank on the currency market of Ukraine. In May, the regulator sold 1.96 billion dollars on the foreign exchange market and repurchased 63.3 million dollars for reserves. The NBU’s net sale of currency last month increased to $1.9 billion.
“This happened against the background of the exhaustion of the seasonal factor (increase in the sale of currency by farmers for sowing), as well as in view of the difficulties with the export of food to neighboring countries and through the “grain corridor”.
At the same time, receipts from international partners were significantly larger than the volume of NBU interventions on the sale of currency, which were carried out to cover the difference between supply and demand on the foreign exchange market of Ukraine,” the regulator explains.
Also last month, as a result of revaluation, the value of financial instruments decreased by $26.8 million.
The current volume of international reserves provides financing for 4.9 months of future imports.
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