The National Bank of Ukraine (NBU) says the country’s international reserves as of May 1 totaled $25.695 billion, up by 3.1% MoM.
“As of May 1, Ukraine had an equivalent of $25,695.0 million in international reserves, according to preliminary data. In April, they increased by 3.1%. The increase was primarily driven by the NBU’s reserves management transactions and forex market interventions,” the regulator said on its website on May 7.
“FX demand from businesses fell sharply following a bout of panic buying in March. FX supply was more than sufficient to meet client bids, resulting in the hryvnia gaining strength and the NBU resuming transactions to ramp up international reserves,” the reports said.
In particular, the NBU made $678.8 million in net FX purchases in April. The central bank stepped in to purchase foreign currency on the days that FX supply surpassed demand, generating a total $723.3 million in FX purchase interventions. To smooth out excessive exchange rate fluctuations that weakened the hryvnia, the NBU sold $44.5 million during the month. In total, the central bank in April allocated $303.9 million for servicing and repaying public and government-guaranteed debt in foreign currency. The international reserve outflows were partially offset by proceeds from the placement of government domestic loan bonds in foreign currency worth $164.4 million. The country’s international reserves changed also over the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). They gained an equivalent of $232.0 million in value last month.
“International reserves now cover 4.5 months of future imports, which is sufficient for Ukraine to meet its obligations, and for the government and the NBU to make their current transactions,” the regulator said. (UNIAN/Business World Magazine)