Preliminary data showed that as of 1 July 2019, Ukraine's international reserves stood at USD 20,638.9 billion (in the equivalent). In June, international reserves increased by 6.4% primaly on account of Government placement of eurobonds and purchase by the National Bank of Ukraine (NBU) of foreign currency on the interbank market.
Overall, during the month, international reserves were affected by the following factors:
- first, Government management of the government debt. In June, return on sale of domestic government bonds and eurobonds made up USD 1,612.4 million. In particular, sold eurobonds earned EUR 1.0 billion, domestic government bonds – USD 325.8 million and EUR 148.0 million.
A share of this return was used to service and repay the public and publicly guaranteed debt denominated in foreign currency. The total payouts made up USD 952.4 million (in the equivalent), whereof USD 773.6 million were paid on domestic government bonds. The Ukrainian government and the National Bank of Ukraine made payments to the IMF of USD 157.5 million. The rest was used to service other liabilities to other foreign creditors and international financial institutions.
- second, FX market conditions were favorable on the account of preserved positive market conditions for Ukraine’s export, moderate imports and foreign capital inflows to government securities in hryvnia.
This factors account for excess of currency supply over demand and enabled the NBU to replenish international reserves on account of the FX interbank interventions of USD 322.3 million. In particular, USD 183.0 million were bought at request for quote and USD 139.3 million and USD 139.3 million – single-rate interventions. During the month, the NBU did not conduct any FX interventions.
- 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 254.6 million (in the equivalent).
As of 1 July 2019, international reserves could pay for 3.4 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.