Preliminary data suggests that as of October 1, 2015, Ukraine's international reserves amounted to USD 12,962 million in the equivalent. In October, the international reserves increased by USD 188 million.
The increase in the international reserves was primarily due to FX purchases in the interbank FX market. In October, the National Bank of Ukraine purchased USD 300.5 million in the interbank market. The largest part of these funds (USD 295.2 million) was purchased through auctions. In addition, EUR 199 million allocated by Germany's KfW Development Bank to the Government of Ukraine contributed to the build-up of international reserves.
Ukraine’s international reserves expanded despite the need to make payments related to the repayment and service of the public and publicly guaranteed debt denominated in foreign exchange. In October, Ukraine paid back USD 95.7 million, including USD 13.2 million in debt service payments on sovereign bonds. In October, the National Bank of Ukraine carried out foreign exchange interventions in the interbank FX market of Ukraine. Last month the regulator sold foreign exchange worth USD 46.5 million to banks, of which USD 37.5 million was sold through the Dutch auction, which was held on October 30, 2015.
The Governor of the National Bank of Ukraine said that an IMF mission is expected to visit Ukraine in the nearest future, adding that the originally scheduled visit was postponed due to technical reasons. “We expect to receive the third tranche of the loan, which would enable the National Bank of Ukraine to increase international reserves up to USD 15 billion,” said Governor of the National Bank of Ukraine Valeria Gontareva.
Currently, the amount of international reserves held by Ukraine is sufficient to enable the Government and the National Bank of Ukraine to settle their foreign debt obligations and current operations.