Preliminary data showed that, as of 1 March 2021, Ukraine's international reserves stood at USD 28.543 billion (in the equivalent). In February, they fell by 1% due to the repayment of external and internal public debt, which were repaid in part by FX inflows to the government and the NBU FX interventions.
Overall, international reserves in February were affected by the following factors:
- First, operations related to the management of public debt. FX inflows to the government amounted to USD 456.7 million came from a placement of domestic government debt securities (T-bills&bonds). At the same time, the government spent and equivalent of USD 633.9 million (in the equivalent) on servicing and repayment of FX public debt. That includes the USD 489.2 million that went towards the servicing and repayment of T-bills&bonds, and the USD 33.7 million that was spent on the servicing of Eurobonds. The rest of the funds went to meet the government’s other FX commitments.
Furthermore, the government and the NBU repaid an equivalent of USD 213.1 million (in the equivalent) to the International Monetary Fund (IMF) in February.
- Second, the NBU’s interbank FX market transactions. At the beginning of February, the FX supply exceeded demand on the account of nonresidents’ increasing the T-bills&bonds portfolio. During this period, the NBU bought USD 200 million to replenish international reserves. In the last two weeks of February, the FX market was balanced, and so the central bank did not intervene. The central bank did not intervene to sell foreign currency in February.
- 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 87.5 million (in the equivalent).
International reserves now cover 4.6 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 are 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.