International reserves grows by 4.5% to a record-breaking USD 39 billion in June

In June, international reserves increased by 4.5% to a record level in the entire history of independence of USD 39 billion.

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

As of July 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to USD 38,999.5 million.

In June, they increased by 4.5% and broke the record for the entire history of Ukraine's independence.

Prior to this result, the maximum level recorded on May 1, 2011, was USD 38,351.7 billion.

Throughout June 2023, international reserves continued to grow thanks to steady and rhythmic inflows from international partners, which exceeded the net sale of currency by the National Bank and the country's foreign currency debt payments.

In general, during the past month, 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 4,286.4 million. From this amount:

- USD 1,648.3 million – macro-financial assistance from the EU;

- USD 1,199.7 million – from the United States (through the World Bank Trust Fund);

- USD 886.0 million – the second tranche under the extended financing program with the International Monetary Fund;

- USD 468.4 million – from the placement of currency bonds of the domestic state loan (OVDP);

- USD 69.1 million – from the World Bank;

- USD 15.0 million – from the Government of Finland.

The Government of Ukraine paid USD 704.7 million for servicing and repayment of the state debt in foreign currency, of which: USD 595.9 million– for servicing and repayment of foreign currency government bonds, USD 52.8 million– debt to the World Bank, the rest – debt to others international creditors.

In addition, Ukraine paid USD 171.7 million to the International Monetary Fund.

In June 2023, the National Bank (according to balance sheet data) sold USD 1,862.9 million on the foreign exchange market and repurchased USD 49.6 million for reserves.

Therefore, the net sale of currency by the NBU decreased to USD 1,813.3 million month over month.

Proceeds from international partners continued to be significantly larger than the volume of NBU interventions on the sale of currency, which were carried out to cover the difference between supply and demand on the foreign exchange market of Ukraine.

Also, in June, as a result of revaluation, the value of financial instruments increased by USD 81.3 million.

The current volume of international reserves provides financing for 5.2 months of future imports.

As the Ukrainian News agency earlier reported, 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.

The balance of payments' current account surplus was USD 8.6 billion (5.8% of GDP) in 2022, compared with a deficit of USD 3.9 billion (1.9% of GDP) in 2021.

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