International reserves down 1.9% to USD 38.9 billion in October

In October, international reserves decreased by 1.9% to USD 38.9 billion.

This is stated in the message of the NBU, Ukrainian News Agency reports.

As of November 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to USD 38,973.0 million.

In October, they decreased by 1.9%.

This dynamics was caused by the NBU's interventions and debt payments of the country in foreign currency.

At the same time, both factors were largely offset by revenues from international partners.

In total, during October 2023, a number of factors determined the dynamics of international reserves.

In October 2023, according to the balance sheet data, the National Bank sold USD 3,351.5 million on the foreign exchange market and bought back USD 14.0 million to reserves.

Consequently, the net currency sale by the NBU last month was USD 3,337.5 million, compared to USD 2,691.4 million in September.

The increase in interventions was primarily due to the situational increase in demand for currency in the early days of the transition from exchange rate fixing to a regime of managed exchange rate flexibility.

So, from 2 to October 6, the net sale of currency by the National Bank in the foreign exchange market amounted to USD 1,151.7 million in accordance with the balance sheet data, almost half of this volume was sold by the NBU on the first day of the new exchange rate regime.

In the future, the NBU's currency sales interventions stabilized to the level observed before the transition to managed flexibility.

The government's foreign exchange accounts at the National Bank received USD 3,313.1 million.

Of this amount:

- USD 1,590.4 million - macro-financial assistance from the EU;

- USD 1,150.0 million - grant funds from the United States through the World Bank’s trust fund of donors;

- USD 572.7 million - from the placement of foreign currency government domestic loan bonds.

The Government of Ukraine paid USD 892.5 million for servicing and repayment of the state debt in foreign currency, of which USD 715.3 million - for servicing and repayment of foreign currency government domestic loan bonds, USD 135.8 million - debt to the World Bank, and the rest - debt to other international creditors.

In addition, Ukraine paid USD 80.1 million to the International Monetary Fund.

In October 2023, as a result of the revaluation, the value of financial instruments increased by USD 247.2 million.

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

As Ukrainian News Agency earlier reported, in September, international reserves decreased by 1.7% to USD 39.7 billion.

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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