As of 1 September 2020, Ukraine’s international reserves stood at USD 29,048.7 million (in the equivalent), preliminary data showed. In August, they increased by 1%, primarily due to a favorable situation in the FX market.
Overall, changes in international reserves during the month were driven by the following factors:
- First, the NBU’s interventions in the interbank FX market. In August, FX supply exceeded demand, enabling the NBU to replenish international reserves. During the month, the NBU bought a total USD 460,5 million. At the same time, the central bank did not intervene to sell foreign currency.
- Second, the government’s transactions related to public debt management. In August, the government received USD 250.5 million in FX proceeds from the sale of FX-denominated domestic government debt securities. At the same time, the government spent an equivalent of USD 645.2 million on servicing and repaying FX-denominated public debt. That includes the USD 496.5 million that went to make repayments on FX-denominated domestic government debt securities. The remaining funds were used to meet other commitments to foreign creditors. Furthermore, the government and the NBU repaid an equivalent of USD 204.5 million to the International Monetary Fund in August.
- Third, the revaluation of financial instruments (due to changes in their market value and exchange rates). These instruments gained an equivalent of USD 385 million in value last month.
International reserves now cover 4.8 months of future imports – sufficient for Ukraine to meet its commitments, and for the government and the NBU to conduct their current transactions.
Data on international reserves and foreign currency liquidity are compiled and released 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 following the reporting month.
Revised data are available here.