Preliminary data suggests that as of 1 August 2017, Ukraine's international reserves amounted to the equivalent of USD 17, 795 million. In July, reserves remained virtually at the level of the previous month (a decline of less than 1%). A slight decline in reserves was mainly due to expenditures on servicing public debt. Overall, international reserves increased by 15% year-to-date.
In July 2017, Ukraine's international reserve dynamics were determined by a number of factors:
Some USD 157.9 million in proceeds was raised by the Government from the placement of domestic government bonds denominated in foreign currency.
In July, the NBU intervened in the interbank market by purchasing foreign currency, with the NBU’s net FX purchases amounting to USD 29.8 million.
The NBU purchased USD 64.7 million during the month, including USD 52.0 million was purchased by the NBU through interventions with request for best quotation).At the same time, the NBU held a FX sale auction through which USD 34.9 million was sold. The NBU intervened in the market by selling foreign currency to smooth out excessive volatility in the interbank FX market due to the coincidence in time of the public holiday in the U.S. (Independence Day was celebrated on the 4th of July) and a business day in Ukraine.
Some USD 579.4 million was used for repayments and servicing of public and publicly guaranteed debt denominated in foreign currency, including USD 509.9 million in principal and interest payments on domestic government bonds denominated in foreign currency.
As of 1 August 2017, the amount of Ukraine’s international reserves is sufficient to cover 3.6 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.