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Ukraine’s International Reserves Increased by USD 0.5 Billion in November

Ukraine’s International Reserves Increased by USD 0.5 Billion in November

Preliminary data showed that as of 1 December 2019, Ukraine's international reserves stood at USD 21,931.7 million (in the equivalent). In November, the international reserves grew by 2.5%. International reserves increased primarily on the back of persisting favorable conditions on the FX market.

Overall, during the month, international reserves were affected by the following factors:

  • First, the NBU’s FX interbank transactions. Despite significant slowdown of foreign capital inflows in contrast to the previous months, supply of foreign currency was much greater than demand on the account of FX sales by exporters. Thus, the NBU received the means to replenish reserves by USD 897.8 million (net purchase). In particular, USD 777.8 million were bought at single-rate interventions and USD 120.0 million at request for quote. During the month, the NBU did not conduct any interventions to purchase foreign currency. 
  • Second, Government’s servicing the government debt.In general, Ukraine paid USD 644.7 million (in the equivalent) to service and repay its public and publicly guaranteed debt denominated in foreign currency. This amount included USD 425.5 million spent on repayment of domestic T-bonds&bills, and USD 9.2 million – on repayment of Eurobonds. In addition, the government and the NBU paid USD 84.4 million to settle their liabilities to the International Monetary Fund. The rest was used to service other liabilities to other foreign creditors and international financial institutions. These expenses were partly compensated by revenues of the Government of USD 304.9 million of earnings from the placement of domestic government bonds denominated in foreign currency. 
  • 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 instruments decreased by USD 29.6 million (in the equivalent).

The 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 the 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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