Preliminary data showed that as of 1 December 2020, Ukraine's international reserves stood at USD 26,135.7 million (in the equivalent). In November, they fell by USD 4.7 million (in the equivalent) due to the repayment of external and internal public debt and NBU transactions to mitigate exchange rate fluctuations in the FX market, which were offset by FX inflows to the government.
Overall, in November, international reserves were affected by the following factors:
- first, government transactions to repay manage public debt. FX inflows to the government amounted to USD 355.5 million (in the equivalent), of which USD 345.5 million (in the equivalent) came from a placement of domestic government debt securities. Spending on servicing and repayment of FX public debt amounted to USD 319.6 million (in the equivalent). Specifically, USD 245.9 million was allocated to the servicing and repayment of domestic government debt securities, USD 72.5 million to meeting commitments to the IMF, while the rest of the funds went to meet the state’s other FX commitments.
- second, the NBU’s interbank FX market transactions. In early November, demand for foreign currency in the interbank FX market exceeded supply due to further 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 87 million. On some days, when excessive supply of foreign currency was observed in the market, the NBU purchased USD 41.0 million. After the first week, the FX market in November was balanced, therefore the NBU made no interventions.
- third, the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). These instruments gained an equivalent of USD 77.9 million in value last month.
International reserves now cover 4.3 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 after the reporting month ends
- for revised data, no later than on the 21st day after the reporting month ends.
Revised data are available here.