The National Bank of Ukraine expects the country’s foreign reserves to exceed $30 billion until the end of the year, Deputy Chairman of the NBU, Serhiy Nikolaychuk has said.
“If we talk about our expectations regarding reserves, there will be no tangible payments on foreign currency debts in the fourth quarter. Instead, the government will be able to replenish reserves through borrowings. This is primarily about an IMF loan, as well as a second tranche from the European Commission and a tranche from the World Bank. If all these plans are put to life, for which we hope there are all grounds, until year-end the reserves will again be above $30 billion,” Nikolaychuk said.
The central bank’s senior official recalled that in September, the reserves dropped by 9.2%, to $28.7 billion, first of all, given that it was in that month that Ukraine performed the main payments on this year’s foreign debt. In particular, the government repaid U.S. government-guaranteed bonds and restructured Eurobonds, as well as interest on external borrowings. The total amount of payments was the equivalent of nearly $2.6 billion.
“In addition, the decrease in the dollar equivalent of reserves was affected by the exchange rate revaluation of assets in other currencies and gold (-$202 million). Instead, the National Bank was able to buy foreign currency in the interbank foreign exchange market. Last month’s net purchase stood at nearly $140 million,” Nikolaychuk added. (Ukrinform/Business World Magazine)