International reserves down 7.9% to USD 39 billion in May

As of June 1, 2024, the international reserves of Ukraine, according to preliminary data, amounted to USD 39,033.8 million, in May they decreased by 7.9%.

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

This dynamic is caused by the NBU's foreign exchange interventions to ensure exchange stability and debt payments of the country in foreign currency, which were partially compensated by the proceeds from the placement of currency government domestic loan bonds (currency OVDPs) and from international partners.

In total, during May 2024, a number of factors determined the dynamics of international reserves.

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 3,087.0 million in the foreign exchange market and bought back USD 11.1 million to reserves.

Consequently, the net sale of currency by the NBU in May was USD 3,075.9 million, an increase from April.

This is due to the increase in demand in the foreign exchange market, primarily against the background of the activation of government spending due to the establishment of rhythmicity of external assistance in March-April.

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

USD 143.1 million was deposited into the government's currency accounts at the National Bank. Of this amount:

- USD 123.1 million - from the placement of foreign currency government domestic loan bonds;

- USD 20.0 million – from the World Bank;

USD 412.3 million was paid for servicing and repayment of the state debt in foreign currency, of which:

- USD 309.1 million – servicing and repayment of foreign currency government domestic loan bonds;

- USD 42.9 million - servicing and repayment of debt to the European Investment Bank;

- USD 30.7 million– servicing and repayment of the debt to the EBRD;

- USD 21.3 million – servicing and repayment of the debt to the World Bank;

- USD 8.3 million – payment of debt to other international creditors.

In addition, Ukraine paid USD 240.8 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 May, due to revaluation, the value of financial tools increased by USD 216.1 million.

The current volume of international reserves provides financing for 5.1 months of future imports.

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.

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