Net International Reserves Up 4% To USD 37.3 Billion In May

In May, the net international reserves increased by 4% year over year to USD 37.3 billion.

This is evidenced by NBU data, Ukrainian News Agency reports.

As of June 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to USD 37,311.3 million.

In May, reserves rose 4% and updated the eleven-year high.

A larger volume than the above was recorded in August 2011.

International reserves increased due to steady and rhythmic revenues from international partners, which exceeded the net sale of currency by the National Bank and debt payments of the country in foreign currency.

In general, during May 2023, a number of factors determined the dynamics of international reserves.

First of all, it was due to revenues in favor of the government and payments for the maintenance and repayment of public debt.

The government's foreign exchange accounts at the National Bank received USD 4,322.8 million.

Of this amount:

- USD 1,616.0 million - macro-financial assistance from the EU;

- USD 1,250.0 million - from the United States (through the World Bank trust fund);

- USD 1,073.7 million - from the placement of government domestic loan bonds in foreign currency (OVDPs);

- USD 383.1 million - from the World Bank.

The Government of Ukraine paid USD 842.2 million for servicing and repayment of public debt in foreign currency, of which: USD 742.3 million - for servicing and repayment of foreign currency government bonds, USD 30.1 million - debt to the World Bank, the rest - debt to other international creditors.

Besides, Ukraine paid the International Monetary Fund USD 195.5 million.

The dynamics of international reserves were also influenced by the operations of the National Bank in the foreign exchange market of Ukraine.

In May 2023, the National Bank (according to the balance sheet data) sold USD 1,962.9 million on the foreign exchange market and bought back USD 63.3 million to reserves.

So, the net sale of the NBU currency last month increased to USD 1,899.6 million.

This happened against the background of exhaustion of the seasonal factor (increase in the sale of currency by farmers for sowing), as well as due to the difficulties with the export of food to neighboring countries and through the "grain corridor."

At the same time, revenues from international partners were significantly greater than the NBU's currency sales interventions, which were carried out to cover the difference between demand and supply in the foreign exchange market of Ukraine.

In addition, the dynamics of international reserves was determined by such a factor as revaluation of financial instruments (due to changes in market value and exchange rates).

In May, as a result of the revaluation, the value of financial instruments decreased by USD 26.8 million.

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

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

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