Preliminary data suggest that Ukraine's international reserves amounted to the equivalent of USD 20,524.6 million as at 1 May 2019. In April, despite the favorable situation in the FX market, they decreased by 0.5% due to significant repayments of public debt.
Over the month, international reserves were mainly affected by the following factors:
- First, servicing and repayment of Ukraine’s public debt. Last month, an equivalent of USD 881.7 million was allocated to service and repay public and publicly guaranteed debt denominated in foreign currencies.
In particular, USD 710.3 million was allocated to service and repay domestic government bonds, another USD 78.0 million – to serviceeurobonds, and the rest – to service and repay the debt to international financial institutions.
Such expenses were partially offset by earnings from the placement of domestic government bonds in foreign currencies amounting to USD 416.6 million and EUR 2.6 million.
- Second, favorable conditions in the FX market. The NBU’s net FX purchase in the interbank FX market increased the reserves by USD 299.9 million.
In April, the FX supply exceeded the demand, in particular, due to the stable inflow of foreign exchange earnings from exporters and investment into the hryvnia government securities by nonresidents. This enabled the NBU to purchase USD 321.5 million in the interbank FX market, including USD 181.5 million through best-quote interventions, without influencing the hryvnia exchange rate movements shaped by fundamental factors. Herewith, over the month, the NBU sold only USD 21.6 million through single-rate interventions to smooth out exchange rate fluctuations.
- Third, the revaluation of financial instruments (change in the market value and in the exchange rate of the hryvnia against foreign currencies). Last month, their value increased by USD 54.0 million (in the equivalent).
As at 1 May 2019, international reserves covered 3.4 months of future imports and were sufficient for Ukraine to meet its obligations and for the government and the NBU to run their ongoing activities.
Data on international reserves and foreign currency liquidity are compiled and distributed on a monthly basis:
- no later than on the seventh day following the reporting month – for preliminary data
- no later than on the twenty-first day following the reporting month – for revised data.
Revised data are available here.