Ukraine’s international reserves grew by $0.3 billion in February, to $26.6 billion, the press service of the National Bank of Ukraine (NBU) reported.
“As of March 1, Ukraine’s international reserves, according to tentative data, amounted to $26.623 billion (in equivalent). In February, they increased by 1.3%. An increase in international reserves in February was caused, first and foremost, by the continued favorable situation in the foreign exchange market,” the report reads.
In general, the dynamics of the reserves during the month were determined by the following factors: first, the NBU’s transactions on the interbank foreign exchange market. In February, the net supply of foreign currency increased as a result of maintaining a sufficient level of export earnings and a simultaneous decrease in demand for foreign currency from importers due to lower prices and energy demand amid a warm winter, as well as the spread of the coronavirus around the world, which hindered world trade and restrained international tourism.
As a result, NBU currency purchases on the interbank foreign exchange market exceeded sales by $689 million.
The NBU replenished international reserves on separate days when the supply of foreign currency was higher than demand, and in total, it bought $734 million.
The current volume of international reserves covers four months of future imports, which is sufficient to meet Ukraine’s commitments and ongoing operations by the government and the National Bank of Ukraine.
Ukraine’s international reserves amounted to $26.293 billion as of February 1. (Ukrinform/Business World Magazine)