05 February 2021, Friday, 18:32 110

International Reserves Down By 1.1% To USD 28.8 Billion In January

Редактор: Daria Zubkova

In January, the international reserves of the National Bank of Ukraine (NBU) fell by 1.1% to USD 28.821 billion.

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

"As of February 1, 2021, according to preliminary data, Ukraine's international reserves amounted to USD 28.821 billion (in equivalent). In January, they decreased by 1.1%, primarily due to the repayment of external and internal obligations of the state," the statement reads.

It is noted that, firstly, the dynamics of reserves during January was determined by the government's operations to manage the public debt.

The total volume of payments for servicing and repayment of the state debt in foreign currency amounted to USD 311.4 million (in equivalent), of this amount, USD 197 million was spent on servicing and redeeming government domestic loan bonds, USD 66.4 million - on servicing Eurobonds, the rest of the funds - for the fulfillment of other obligations of the state in foreign currency.

At the same time, foreign exchange earnings from the placement of government domestic loan bonds amounted to USD 48.2 million.

Secondly, the NBU's operations in the interbank foreign exchange market influenced the dynamics of reserves.

“Traditionally, low activity in the foreign exchange market was observed in early January. The National Bank carried out several interventions to sell (totaling USD 20 million) and purchase (USD 40 million) foreign exchange to smooth out fluctuations in the foreign exchange market,” the regulator stressed.

It is indicated that in the last two weeks of January, the interbank foreign exchange market was balanced, so the National Bank did not come out with interventions.

Third, the dynamics of reserves was determined by the revaluation of financial instruments (due to changes in the market value and exchange rates).

In January, their cost decreased by USD 68.7 million (in equivalent).

As Ukrainian News Agency earlier reported, in late 2020, Ukraine's international reserves grew by 15% and as of January 1, 2021, they amounted to USD 29.1 billion (in equivalent).