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Economy 2020-10-15T04:58:40+03:00
Ukrainian news
Foreign Reserves Up 5.8% To USD 21.8 Billion In July

Foreign Reserves Up 5.8% To USD 21.8 Billion In July

NBU, eurobonds, currency, foreign currency, government domestic loan bonds, foreign reserves

In July, foreign reserves increased by 5.8% to USD 21.8 billion.

The National Bank of Ukraine has said this in a statement, Ukrainian News Agency reports.

As of August 1, 2019, Ukraine's foreign reserves made USD 21,840.13 million (equivalent).

In July, they grew by 5.8%, firstly, due to Eurobonds floatation by the government and the purchase by the National Bank of currency in the interbank market.

The dynamics of reserves during the month was determined by the following factors: the favorable situation in the foreign currency market due to the growing interest of non-residents in hryvnia-denominated government loan bonds, as well as the preservation of a positive pricing environment for Ukrainian exports and moderate volumes of imports.

It is noted that these factors led to a significant excess of currency supply over demand and allowed the National Bank to replenish foreign reserves due to interventions in the interbank foreign currency market totaling USD 1,271.1 million.

In particular, USD 405.2 million was bought during the interventions to choose the best rate, and USD 865.9 million at a single rate.

The National Bank did not conduct any interventions on the sale of foreign currency during the month.

Secondly, government debt management operations.

So, in July, the proceeds from the placement of government loan bonds denominated in foreign currency made USD 1,005.6 million.

These revenues almost completely offset government payments for servicing and paying off state and state-guaranteed debt in foreign currency.

Last month, such expenses made USD 1,019.0 million (equivalent), of which USD 941.3 million was spent on servicing and repaying government foreign currency-denominated loan bonds, and the rest was spent on other obligations to foreign creditors and international financial organizations .

Thirdly, revaluation of financial instruments (change in market value and hryvnia exchange rate to foreign currencies).

Last month, their value decreased by USD 56.5 million (equivalent).

As of August 1, 2019, the volume of international reserves covers 3.4 months of future imports, which is sufficient to fulfill the obligations of Ukraine and current operations of the government and the National Bank.

As Ukrainian News Agency earlier reported, in 2018, net reserves increased by 44.6% from USD 6.672 billion.