Preliminary data showed that as of 1 June 2019, Ukraine's international reserves stood at USD 19.4016 billion (in the equivalent). In May, international reserves decreased by 5.5%, due to significant repayments of public debt.
Overall, during the month, international reserves were affected by the following factors:
- first, Ukraine’s discharging its obligations related to public debt. In May, Ukraine paid USD 1.8011 billion (in the equivalent) to service and repay its public and publicly guaranteed debt denominated in foreign currency.
In particular, USD 1.2813 billion was spent on servicing and repaying Eurobonds and domestic government bonds. In addition, the government and the NBU paid the equivalent of USD 446.5 million to settle their liabilities to the International Monetary Fund. The rest was used to service debt to other international financial institutions.
These expenditures were partially offset by receipts from the placement of foreign currency-denominated domestic government bonds worth USD 426.7 million and by the arrival of World Bank financing worth USD 10 million.
- second, mostly favorable FX market conditions. Overall, net purchases of foreign currency by the NBU on the interbank FX market increased international reserves by USD 160.6 million.
In May, the supply of foreign currency exceeded demand, mainly due to stable receipts of exporters’ FX earnings. Sustained growth in non-residents’ investment in hryvnia-denominated government securities also played a role. As a result, the NBU purchased USD 203.6 million on the interbank FX market, of which USD 171.5 million was purchased by choosing the best price prior to interventions. These purchases did not influence hryvnia exchange rate movements, which were determined by underlying factors. To smooth out exchange rate fluctuations, the NBU sold only USD 43 million in May, by intervening at a single exchange rate.
- third, the revaluation of financial instruments (due to changes in their market value and changes in the exchange rate of the hryvnia against foreign currencies). Last month, the value of these financial instruments increased by USD 80.7 million (in the equivalent).
As of 1 June 2019, international reserves could pay for 3.2 months of 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 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.