Ukraine’s international reserves in May shrank by 0.6%, to $27.840 billion in the equivalent as of June 1.
The reduction was due to the repayment of external and internal debts by the state, which were partially offset by foreign exchange (FX) earnings in favor of the government, the press service of the National Bank of Ukraine said on June 7.
In general, according to the National Bank, the dynamics of reserves during May were determined, in particular, by operations to manage the public debt.
“The government spent an equivalent of $650.6 million on the servicing and repayment of FX public debt. That includes the $529.3 million that went towards the servicing and repayment of domestic government debt securities. The rest of the funds went to meet the government’s other FX commitments,” it said.
At the same time, foreign exchange earnings in favor of the government amounted to $417.9 million, of which $354.3 million came from the placement of government bonds. In addition, the NBU and the government paid $64.3 million to the International Monetary Fund in May.
Also, according to the regulator, the dynamics of reserves was influenced by the revaluation of financial instruments due to changes in the market value and exchange rates. Last month, their value increased by $136.8 million (in the equivalent).
The NBU says that the interbank foreign exchange market in May was balanced, so the National Bank did not conduct foreign exchange interventions.
“The international reserves now cover 4.2 months of future imports, sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions,” it reported. (UNIAN/Business World Magazine)