Preliminary data showed that, as of 1 March 2020, Ukraine's international reserves stood at USD 26,622.8 million (in the equivalent). In February, the international reserves grew by 1.3% primarily on the back of persisting favorable conditions on the FX market.
Overall, changes in international reserves during the month were driven by the following factors:
- first, the NBU’s FX interbank transactions. In February, net supply of foreign currency increased due to sustained proceeds from exports and lower demand on foreign currency from importers, as warm winter pushed down prices and demand for energy and the coronavirus spreading around the globe hindered global trade and constrained international tourism. The NBU’s purchases of foreign currency in the interbank FX market exceeded its sales by USD 689.0 million. On the days that the supply of foreign currency in the FX market exceeded demand, the NBU intervened, having purchased a total USD 734.0 million. To smooth out excessive exchange rate fluctuations that weakened the hryvnia, the NBU sold USD 45.0 million by intervening.
- second, Government’s servicing the government debt. Overall, the government spent USD 768.8 million (in the equivalent) on servicing and repaying public debt denominated in foreign currency. Whereof USD 417.2 million were repayments under FX domestic government debt securities, USD 213.6 million – repayments of the government and the NBU to the International Monetary Fund, and USD 33.7 million – repayments under Eurobonds. The rest was used to service other liabilities to other foreign creditors and international financial institutions. At the same time, the government raised USD 202.3 million by offering FX domestic government debt securities.
- third, the revaluation of financial instruments (due to changes in their market value and in the exchange rate of the hryvnia against foreign currencies). Last month, the value of financial instruments increased by USD 207.2 million (in the equivalent).
International reserves covered 4.0 months of future imports. This was sufficient for Ukraine to meet 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 released on a monthly basis:
- for preliminary data, no later than on the 7th day following the reporting month
- for revised data, no later than on the 21st day following the reporting month.
Revised data are available here.