Preliminary data suggests that as of July 1, Ukraine’s international reserves amounted to the equivalent of $13.98 billion. The stock of international reserves keeps increasing for a third consecutive month. In June, international reserves expanded by 3.3% MOM, or by $452 million. In annual terms, international reserves rose by 36.3% YoY.
June’s increase in international reserves was primarily due to FX purchases by the NBU to smooth excessive exchange rate fluctuations in the interbank FX market and to replenish the reserves. In June, the NBU’s net FX purchases amounted to $429.6 million. In June, the National Bank of Ukraine held no FX sales auctions.
$70 million raised by the government, including $50 million in proceeds from the placement of sovereign bonds denominated in foreign currency, also contributed to the increase in international reserves.
Ukraine’s international reserves expanded despite the need for the government to repay and service public and publicly guaranteed debt denominated in foreign currency. The government of Ukraine paid back $171.2 million, including $164.2 million in interest payments on external sovereign bonds.
Currently, the amount of Ukraine’s international reserves is sufficient to cover 3.6 months of future imports and enable the government and the NBU to settle their foreign debt obligations and current operations. (Bank.gov.ua/Business World Magazine)
