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Ukraine’s International Reserves Increased by USD 0.2 Billion in August

Ukraine’s International Reserves Increased by USD 0.2 Billion in August

Preliminary data showed that, as at 1 September 2019, Ukraine's international reserves stood at USD 22,015.00 million (in the equivalent). In August 2019, they increased by 0.8% mainly due to the NBU’s net FX purchases in the interbank market.

The reserves growth of the previous month was generally due to the following factors:

  • first, the FX market conditions remained favorable as a result of favorable prices for Ukrainian export commodities, high grain yields, and moderate imports, despite a decrease in foreign investments into government securities. The above factors have caused an excess of currency supply over demand and enabled the NBU to replenish the international reserves by means of the interbank FX market interventions totaling USD 299.4 million. In particular, the NBU purchased USD 177.0 million through best-rate interventions and USD 139.2 million through single-rate interventions. At the same time, to smooth out the excessive fluctuations towards the weakening of the national currency, the NBU sold USD 16.8 million through FX interventions in August.
  • second, the management of public debt. The spending of the NBU and the government on servicing and repayment of public and publicly guaranteed debt in foreign currencies amounted to USD 257.5 million in total. This amount included USD 89.7 million paid to settle the liabilities to the IMF, USD 33.7 million on servicing eurobonds, USD 23.0 million on servicing domestic government bonds, and the rest – on other liabilities to foreign creditors and international financial institutions.
  • third, the revaluation of financial instruments (change in their market value and in the exchange rate of the hryvnia against foreign currencies). Last month, the value of financial instruments increased by USD 132.9 million (in the equivalent).

Overall, as at 1 September 2019, international reserves could pay for 3.5 months of future imports. This was sufficient for Ukraine to discharge its obligations and for the government and the NBU to conduct their current operations.

Data on international reserves and foreign currency liquidity are compiled and distributed 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 following the reporting month.

Revised data are available here.

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