International Reserves Down 7% To USD 25.1 Billion In May

In May, international reserves fell by 7% to USD 25.1 billion.

This is evidenced by the NBU data, Ukrainian News Agency reports.

As of June 1, 2022, Ukraine's international reserves, according to preliminary data, amounted to USD 25,100.7 million.

During May, they decreased by 7%, primarily due to the sale of foreign currency on the interbank foreign exchange market, which was partially offset by funding from international partners.

In general, in May, the dynamics of international reserves was determined by the following factors: transactions of the National Bank in the interbank foreign exchange market; public debt management operations; revaluation of financial instruments due to changes in market value and exchange rates (their value increased by USD 63.1 million last month).

The National Bank sold USD 3,410.6 million on the foreign exchange market and bought back USD 56.4 million for reserves during May.

Significant volumes of currency sales are due to the excess of demand for it over supply.

Thus, significant expenditures for defense needs, for the import of goods and services, as well as for ensuring settlements with international payment systems for citizens' expenses on hryvnia cards abroad exceeded receipts from exports and labor migrants.

Foreign exchange receipts in favor of the government of Ukraine amounted to USD 1,660.2 million.

In particular, EUR 583.7 million came from the World Bank, and EUR 582.3 million from the European Union.

The total amount of government payments for servicing and repaying the state debt in foreign currency amounted to USD 144.8 million, including USD 60.2 million directed to servicing Ukraine's Eurobonds.

Besides, the National Bank and the government paid USD 68.6 million to the International Monetary Fund.

As Ukrainian News Agency reported, in 2021, international reserves increased by 6% to USD 30.941 billion.

The state budget is financed from its own revenues by only a third, the remaining two-thirds are international grants and loans.