In February, the international reserves shrank by 5.3% to USD 27.5 billion.
That follows from the data provided by the National Bank of Ukraine, Ukrainian News Agency reports.
As at March 1, 2022, Ukraine’s international reserves, in compliance with preliminary data, made USD 27,537.9 million.
In February, they fell by 5.3% however, they exceeded the level of reserves Ukraine entered the corona-crisis with early in March 2020 (USD 27 billion).
The decrease in the international reserves was primarily due to payments on the state's external obligations last month and interventions by the National Bank, necessary to smooth out excessive fluctuations in the foreign exchange market.
On the whole, the dynamics of the reserves during February was determined by public debt management operations.
The total amount of government payments for servicing and repaying public debt in foreign currency amounted to USD 1.4 billion.
Of this amount, USD 781.9 million was used to service and redeem domestic government bonds (OVDPs), USD 428.4 million to service and redeem Eurobonds, and the rest to fulfill other government obligations in foreign currency.
Foreign exchange receipts in favor of the government amounted to USD 65 million, including USD 25 million from the placement of government domestic loan bonds.
In addition, in February, the National Bank and the government of Ukraine paid USD 199.1 million to the International Monetary Fund.
After the invasion of Russia of the territory of Ukraine on February 24, the National Bank introduced restrictions on the foreign exchange market to protect the financial system of Ukraine, its reliable and stable functioning.
From February 24 to February 28, taking into account the current restrictions, the central bank mainly bought foreign currency from banks.
Before Russia's armed attack on Ukraine, the situation on the foreign exchange market was volatile, and the National Bank sold and bought foreign currency to smooth out excessive fluctuations.
In February, the National Bank sold USD 1.3 billion on the foreign exchange market and bought back USD 901.2 million.
Consequently, the net sale of currency by the central bank from reserves last month is USD 357.8 million.
The current volume of international reserves provides financing for 3.8 months of current imports, which is enough to meet Ukraine's obligations and current operations of the government and the National Bank.
As Ukrainian News Agency reported, the international reserves decreased by 5.3% to USD 29.3 billion in January.
International reserves in 2021 increased by 6% to USD 30.941 billion.
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