International reserves up 5% to USD 29.9 billion in January

In January, international reserves increased by 5% to USD 29.922 billion.

This follows from a statement by the National Bank, the Ukrainian News agency reports.

As of February 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to USD 29,921.8 million.

In January, they increased by 5% due to receipts from international partners, which offset the net sale of currency by the National Bank to cover the difference between supply and demand on the foreign exchange market of Ukraine.

In general, during January 2023, the dynamics of international reserves were determined by a number of factors.

First, receipts for the benefit of the government and payments for the maintenance and repayment of the public debt.

The government's foreign currency accounts at the National Bank received USD 4,327.7 million. Of them:

- USD 3,256.1 million – from the European Union;

- USD 1,000.0 million – from the United States of America (through the World Bank Trust Fund);

- USD 71.6 million – from the placement of currency bonds of the domestic government loan bonds.

The Government of Ukraine paid USD 65.0 million for servicing and repayment of the state debt in foreign currency.

Of them, USD 59.0 million are for servicing and repaying the debt to the World Bank, USD 5 million are for foreign currency government bonds, and the rest are debts to other international creditors.

Secondly, operations of the National Bank on the currency market of Ukraine.

In January, the National Bank sold USD 3,089.6 million on the foreign exchange market and repurchased USD 28.5 million for reserves.

Therefore, the net sale of currency by the NBU last month decreased compared to December 2022 by about USD 100 million to USD 3,061.1 million.

Keeping the volume of currency interventions by the NBU at a level close to the previous month is due to the impact of significant budget expenditures at the end of 2022 on the demand side, and the combination of a seasonal factor (decrease in export revenues at the beginning of the year) and the effects of a full-scale war on the economic activity of exporters on the supply side.

Third, revaluation of financial instruments (as a result of changes in market value and exchange rates).

In January, due to revaluation, the value of financial instruments increased by USD 225.7 million.

The current volume of international reserves provides financing for 3.7 months of future imports.

As reported by Ukrainian News Agency, in 2022 international reserves decreased by 7.9% to USD 28.5 billion.

In 2021, international reserves increased by 6% to USD 30.941 billion.

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