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International Reserves Amount to USD 18.0 billion in June 2018

5 July 2018

Press Release

 

Preliminary data suggest that as of 1 July 2018, Ukraine`s international reserves amounted to the equivalent of USD 17,978.2 million.  In June, the international reserves decreased by 1.1% due to the repayment of the public debt, denominated in foreign currency.

 

First, some USD 562.4 million was used for repayments and servicing of public debt denominated in foreign currency (except for payments to IMF), including USD 552.5 million in principal and interest payments on domestic government bonds denominated in foreign currency.

 

Second, the Government and the National Bank of Ukraine paid the total of USD 162.0 million (equivalent) to the International Monetary Fund.

 

In June, USD 539.4 million in proceeds raised by the Government from the placement of domestic sovereign bonds in foreign currency contributed the most to the increase in international reserves.

 

At the same time, foreign currency bought by the NBU in the interbank market was not the main source of reserves replenishment anymore, as it was the case in the previous months. Given the certain deterioration of the external pricing situation for Ukrainian exports and the decline of international investors’ interest in emerging markets, the NBU’s ability to purchase an excess supply of foreign currency to replenish the reserve without pressure on the hryvnia exchange rate was limited. Also, in June, the NBU for the first time since January resumed the sale of foreign currency on the interbank market to smooth out excessive exchange rate fluctuations.

 

As a result, the NBU’s net FX purchases dropped to USD 24.0 million in June. In particular:

 

·

USD 90.0 million is a purchase of foreign currency (all purchase operations were interventions with the selection of the best price).

·

USD 66.0 million is a sale of foreign currency (all sale operations were interventions with the selection of the best price).

 

Furthermore, the effect of revaluation of financial instruments on reserves (change in market value and in US dollar exchange rate to other currencies and banking metals) accounted for USD 38.2 million.

 

Overall, as of 1 July 2018, the amount of the international reserves covers 3.2 months of future imports and suffices for Ukraine to meet its obligations and for the Government and the NBU to conduct their current transactions.

 

Data on the international reserves and foreign currency liquidity are compiled and distributed on a monthly basis:

not later than the seventh day following the reporting month – preliminary data;

not later than on the twenty-first day following the reporting month – revised data.

 


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Last modification   05.07.2018