Economy 2021-07-15T05:04:28+03:00
Ukrainian news
International Reserves Down 1.3% In May To USD 25.4 Billion

International Reserves Down 1.3% In May To USD 25.4 Billion

NBU, international reserves, debt, reserves, state debt, public debt obligations

In May, international reserves decreased by 1.3% and as of June 1, 2020 amounted to USD 25.372 billion (equivalent).

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

The decrease in reserves over the past month is primarily due to the repayment of a significant part of the public debt obligations.

In general, the dynamics of reserves during the month was determined by the following factors: firstly, government operations to manage public debt.

A total of USD 1,476.1 million (in equivalent) was allocated for servicing and paying off state and state-guaranteed debt in foreign currency.

Of this amount, USD 1,009.2 million was paid on government foreign loan bonds, USD 337.7 million on government domestic loan bonds denominated in foreign currency, USD 60 million on obligations to the International Monetary Fund (IMF), and the rest on other obligations to foreign creditors.

These expenses from reserves were partially offset by new revenues in favor of the government in the amount of USD 418.8 million, including through the placement of foreign-currency government loan bonds for USD 368.8 million.

Secondly, the supply of currency from the business side continued to exceed the demand, therefore, taking advantage of the favorable situation, the National Bank bought out excess currency and replenished international reserves.

In May, the National Bank bought back USD 660.6 million.

There were no interventions to sell foreign currency.

The current volume of international reserves covers 4.4 months of future imports, which is sufficient to fulfill the obligations of Ukraine and the current operations of the government and the National Bank.

As Ukrainian News Agency earlier reported, in 2019, international reserves increased by 22% and as of January 1, 2020 amounted to USD 25.3 billion (equivalent).

According to the results of 2018, the international reserves of Ukraine increased by 10.6% and as of January 1, 2019 amounted to USD 20.8 billion (equivalent).