Preliminary data showed that as of 1 November 2020, Ukraine's international reserves stood at USD 26,140.4 million (in the equivalent). In October, the reserves decreased by 1.5%, including as a result of redeeming external and domestic debt of the government and foreign exchange interventions conducted by the NBU to alleviate FX rate fluctuations in the currency market.
Overall, the following drivers determined how international reserves changed during September:
- first, government transactions to repay public debt. Spending on servicing and repayment of public and publicly guaranteed debt in foreign currency amounted to USD 381.0 million (in the equivalent). Specifically, USD 213.3 million was allocated to the servicing and repayment of domestic government debt securities in foreign currency, and USD 78.0 million – to Eurobonds, while the rest of the funds went to meet the state’s other FX commitments. At the same time FX inflows to the government amounted to USD 188.0 million (in the equivalent).
- second, the NBU’s interbank FX market transactions. On individual days in October, demand on foreign currency on the interbank FX market exceeded the supply to due recovery of business activity, including resumption of imports To smooth out exchange rate fluctuations that weakened the hryvnia, the NBU intervened several times by selling USD 191.3 million.
- third, the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). Last month, the value of these instruments decreased by USD 1.1 million (in the equivalent).
International reserves now cover 4.4 months of future imports – sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions.
Data on international reserves and FX liquidity is compiled and published on a monthly basis:
- for preliminary data, no later than on the seventh day following the reporting month
- for revised data, no later than on the 21st day after the reporting month ends.
Revised data are available here.