Preliminary data suggests that as of 1 May 2016, Ukraine's international reserves amounted to the equivalent of USD 13.241 billion. Following March’s contraction, international reserves increased by 4.1% or by USD 519.5 million in April, recovering to the level recorded at the beginning of 2016. Over the past 12 months, international reserves expanded by 37.5%.
April’s increase in international reserves was primarily due to FX purchases by the NBU to smooth excessive exchange rate fluctuations in the interbank FX market and to replenish the reserves. In April, the NBU’s net FX purchases amounted to USD 675.8 million. In particular, 13 FX auctions were held in April, through which USD 528.4 million was purchased by the NBU. In April, the National Bank of Ukraine held no FX sales auctions.
USD 661.1 million raised by the Government of Ukraine in April, including USD 651.1 million raised through the issuance of domestic sovereign bonds denominated in US dollars and USD 10 million allocated to Ukraine by the International Bank for Reconstruction and Development (IBRD), also contributed to the increase in Ukraine’s international reserves.
Ukraine’s international reserves expanded despite the need for the Government of Ukraine to repay and service public and publicly guaranteed debt denominated in foreign currency. The Government of Ukraine paid back USD 114.0 million, including USD 58.4 million in interest payments on external sovereign bonds.
In April, the NBU also paid back USD 762.2 million (balance) under swap agreement.
Currently, the amount of Ukraine’s international reserves is sufficient to cover 3.4 months of future imports and enable the Government and the NBU to settle their foreign debt obligations and current operations.
For reference
Data on international reserves and foreign currency liquidity are compiled and disseminated on a monthly basis:
- not later than the seventh day following the reporting month – preliminary data;
- not later than the twenty-first day following the reporting month – revised data;