Economy 2020-04-01T04:03:34+03:00
Ukrainian news
Ukraine’s International Reserves Up 1.3% To USD 26.6 Billion In February

Ukraine’s International Reserves Up 1.3% To USD 26.6 Billion In February

NBU, international reserves, reserves

Ukraine’s international reserves increased by 1.3% to the equivalent of USD 26.6 billion in February.

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

The increase of the country’s international reserves in February was due primarily to the preservation of a favorable situation in the currency market.

In general, the dynamics of the international reserves during the month was determined by the National Bank of Ukraine’s operations on the interbank currency market.

According to the statement, the net supply of foreign currency increased in February because export revenues remained at a sufficient level and demand for foreign currency from importers reduced simultaneously due to lower prices and demand for energy because of a warm winter, as well as the spread of coronavirus around the world, which complicated trade and constrained international tourism.

As a result, the volume of the National Bank of Ukraine’s currency purchases on the interbank currency market exceeded the volume of its sales by USD 689 million.

The National Bank of Ukraine also increased the country’s international reserves by buying USD 734 million on certain days when the supply of foreign currency exceeded the demand for it.

At the same time, the National Bank of Ukraine also intervened on the currency market to sell USD 45 million in foreign currency in order to smooth out excessive hryvnia fluctuations in the direction of depreciation.

The government spent the equivalent of USD 768.8 million on servicing and repayment of state debts in foreign currency during the month.

Of this amount, USD 417.2 million was used to finance payments on domestic government loan bonds (OVDPs) denominated in foreign currency, USD 213.6 million on fulfillment of the obligations of the government and the National Bank of Ukraine to the International Monetary Fund (IMF), and USD 33.7 million on Eurobonds (OVDPs).

The remaining funds were used to fulfill other obligations to foreign creditors and international financial institutions.

In addition, the government raised USD 202.3 million through placement of foreign-currency OVDPs during the month.

Besides, the revaluation of financial instruments (changes in the market value and exchange rate of the hryvnia against foreign currencies) also affected the dynamics of international reserves.

Their value increased by the equivalent of USD 207.2 million in February.

The current amount of international reserves is sufficient to cover four months of future imports, meet Ukraine's obligations, and cover the current operations of the government and the National Bank of Ukraine.

As Ukrainian News Agency earlier reported, Ukraine’s international reserves increased by 3.9% in January to amount to the equivalent of USD 26.3 billion as of February 1, 2020.

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