Preliminary data showed that as of 1 August 2019 Ukraine’s international reserves stood at USD 21.84013 billion (in the equivalent). In July, they increased by 5.8% due to the NBU’s net FX purchases in the interbank FX market.
In general, over the month, reserves were driven by the following factors:
- first, favorable FX market conditions, resulting from non-residents’ increased interest in hryvnia domestic government bonds, sustained high prices for Ukrainian exports, and moderate volumes of import. As a result, the supply of foreign currency exceeded demand, enabling the NBU to increase its international reserves to USD 1.2711 billion by intervening in the FX market. In particular, the central bank purchased USD 405.2 million through interventions at the best exchange rate, and USD 865.9 million through interventions at a single exchange rate. During the month, the NBU did not conduct any interventions to purchase foreign currency.
- second, the government’s operations related to the management of public debt. More specifically, in July, receipts from the placement of foreign currency domestic government bonds totaled USD 1.0056 billion. These receipts almost fully offset the government’s repayments and servicing of public and publicly guaranteed debt denominated in foreign currency. Last month, these payments totaled USD 1.0190 billion in the equivalent, of which USD 941.3 million was spent on servicing and repaying domestic government bonds denominated in foreign currency. The rest of the funds were used to discharge 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 these instruments decreased by USD 56.6 million (in the equivalent).
Overall, as of 1 August 2019, international reserves could pay for 3.4 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 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.