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Ukraine's international reserves have decreased by 1.7% in one month

08 Oct, 2023
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Ukraine's international reserves have decreased by 1.7% in one month

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According to preliminary data from the National Bank of Ukraine, as of the beginning of October, Ukraine's international reserves amounted to $39.7 billion, which is 1.7% less compared to September 1.

In September, international reserves decreased by 1.7% due to interventions by the National Bank of Ukraine in the sale of currency to cover the gap between demand and supply in Ukraine's foreign exchange market and the country's foreign currency debt payments, which were largely offset by inflows from international partners.

In September, the government's foreign exchange accounts at the National Bank of Ukraine received $3.3 billion, which included:

  • $1.59 billion - macro-financial assistance from the EU.
  • $1.25 billion - grant from the United States through the World Bank's trust fund.
  • $386.4 million - from the placement of foreign currency-denominated domestic government bonds.
  • $100.0 million - from the World Bank under the guarantee of the United Kingdom.

Additionally, the government paid $465.3 million for the servicing and repayment of foreign currency-denominated state debt, including $388.9 million for servicing and repaying foreign currency-denominated OVDP, $51.1 million for debt to the World Bank, and the rest for debt to other international creditors.

Ukraine also paid an additional $882.1 million to the International Monetary Fund.

In the interbank foreign exchange market in September, the regulator sold $2.69 billion and bought $0.7 million for reserves.

The National Bank of Ukraine added that the value of financial instruments increased by $12.9 million due to revaluation.

Overall, the current level of international reserves covers financing for 5.3 months of future imports.

The Odessa Journal

The Odessa Journal

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