Preliminary data suggests that Ukraine's international reserves amounted to the equivalent of USD 18,119.7 as of 1 June 2018. In May, the international reserves decreased by 1.6% due to the repayment of the public debt, denominated in foreign currency.
First, the Government and the National Bank of Ukraine paid the total of USD 455.1 million (equivalent) to the International Monetary Fund in May.
Second, USD 214.4 million was used for repayments and servicing of public debt denominated in foreign currency amounting to USD 214.4 million (excluding payments to the IMF), including USD 126.2 million in interest payments on domestic government bonds, and USD 18.5 million – on Ukrainian sovereign Eurobonds.
In May, the main source of reserves replenishment remained the foreign currency, that the NBU bought on the interbank market. This was due to the high prices for Ukrainian exports (metals, ores, and grains) on external markets, and the increased supply of foreign currency by banks, thatreceived from the NBU the wider opportunities to perform their own foreign currency operations on the interbank market since the start of April.
As the supply of foreign currency exceeded the demand, the NBU took the opportunity to increase the international reserves, needed to ensure the macro-financial stability, while this did not counter the strengthening of the hryvnia exchange rate. In May, the NBU bought the total of USD 181.2 million on the interbank market. All purchase operations were performed as the interventions at the best exchange rate. Please be reminded that the NBU intends to buy USD 10 million daily in Q2 2018 on the interbank market to grow its international reserves.
Last month, the reserves increased by USD 272.3 million and EUR 64.6 million, as a result of the Government selling the domestic government bonds in foreign currency.
Furthermore, the effect of revaluation of financial instruments on reserves (change in market value and in exchange rate of hryvnia against foreign currencies) accounted for USD 162.3 million.
Overall, as of 1 June 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 on the seventh day following the reporting month – preliminary data;
not later than on the twenty-first day following the reporting month – revised data.