International reserves down 2.9% to USD 37.9 billion in June

As of July 1, 2024, the international reserves of Ukraine, according to preliminary data, amounted to USD 37,894.2 million, in June they decreased by 2.9%.

This is stated in the message of the NBU, Ukrainian News Agency reports.

Such dynamics are caused by the NBU's currency interventions to cover the structural currency deficit on the market and smooth out exchange rate fluctuations, as well as the country's debt payments in foreign currency.

These operations were partially compensated by income from international partners and from the placement of foreign currency domestic government bonds (currency bonds). In general, during June 2024, the dynamics of international reserves was determined by a number of factors.

First, it was the operations of the National Bank in the foreign exchange market of Ukraine.

According to the balance sheet data, the National Bank sold USD 2,995.5 million in the foreign exchange market and bought back USD 0.9 million to reserves.

Consequently, the net sale of currency by the NBU in June was USD 2,994.6 million, a decrease from May by 2.7%.

Secondly, it was revenues in favor of the government and payments for servicing and repayment of state debt.

USD 2,431.7 million was deposited into the government's currency accounts at the National Bank. Of this amount:

- USD 2,021.4 million from the European Union within the framework of the Ukraine Facility;

- USD 407.3 million - from the placement of foreign currency domestic government bonds;

- USD 3.0 million – from the World Bank;

USD 444.5 million was paid for servicing and repayment of the state debt in foreign currency, of which:

- USD 315.7 million – servicing and repayment of foreign currency domestic government bonds;

- USD 73.6 million - servicing and repayment of debt to the World Bank;

- USD 12.6 million– servicing and repayment of the debt to the Credit Agricole Corporate and Investment Bank;

- USD 42.6 million – payment of debt to other international creditors.

In addition, Ukraine paid USD 247.6 million to the International Monetary Fund.

The third factor was the revaluation of financial instruments (due to changes in market value and exchange rates).

In June, due to revaluation, the value of financial tools increased by USD 111.9 million.

As Ukrainian News Agency earlier reported, Ukraine's international reserves increased by 42% in 2023 and exceeded USD 40.5 billion.

In 2022, international reserves decreased by 7.9% to USD 28.5 billion.

In 2021, international reserves increased by 6% to USD 30.941 billion.