Preliminary data suggests that as of 1 June 2017, Ukraine's international reserves amounted to the equivalent of USD 17.618 billion. International reserves increased by 14% over the first five months of 2017 and by 3% mom in May.
As in previous months, May’s increase in international reserves was mainly attributed to a favorable external environment for Ukrainian exporters that enabled the National Bank of Ukraine to purchase foreign currency without counteracting the appreciation trend of the hryvnia. In May, the NBU’s net FX purchases amounted to USD 521.2 million.
In particular, during May, the NBU purchased a total of USD 525.2 million in the interbank FX market (including USD 266 million purchased through interventions in the form of the best exchange rate offer). At the same time, the NBU sold a total of USD 4 million through interventions in the form of the best exchange rate offer. No FX sale auction was held in May.
In May 2017, USD 38.1 million in proceeds raised by the Government from the placement of domestic government bonds denominated in foreign currency and a disbursement of EUR 8 million from the European Commission contributed to the increase in international reserves.
Meanwhile, funds from international reserves were used for the repayment and servicing of public and publicly guaranteed debt denominated in foreign currency. In May, Ukraine paid back USD 158.6 million (excluding repayments due to the IMF), including USD 18.5 million in interest payments on Eurobonds and USD 82.5 million in principal and interest payments on domestic government bonds. Additionally, some USD 71.8 million were used on payments of the Ukrainian government and the NBU due to the IMF.
As of 1 June 2017, the amount of Ukraine’s international reserves is sufficient to cover 3.7 months of future imports and enable the Government and the NBU to settle their foreign debt obligations and current operations.
Data on international reserves and foreign currency liquidity are compiled and disseminated on a monthly basis:
- not later than the seventh day following the reporting month – preliminary data;
- not later than the twenty-first day following the reporting month – revised data.
Revised data are available at link.