OREANDA-NEWS. Preliminary data suggests that as of 1 July 2016, Ukraine's international reserves amounted to the equivalent of USD 13.988 billion. The stock of international reserves keeps increasing for a third consecutive month.  In June, international reserves expanded by 3.3% m-o-m, or by USD 452 million. In annual terms, international reserves rose by 36.3% y-o-y.    

June’s increase in international reserves was primarily due to   FX purchases by the NBU  to smooth excessive exchange rate fluctuations in the interbank FX market and to replenish the reserves. In June, the NBU’s net FX purchases amounted to USD 429.6 million.  In June, the National Bank of Ukraine held no FX sales auctions.

USD 70.0 million raised by the Government, including USD 50 million in proceeds from the placement of sovereign   bonds denominated in foreign currency, also contributed to the increase in international reserves.    

Ukraine’s international reserves expanded despite the need for the Government  to repay and service public and publicly guaranteed debt denominated in foreign currency. The Government of Ukraine paid back USD 171.2  million, including USD 164.2 million in interest payments on external sovereign bonds.         

Currently, the amount of Ukraine’s international reserves is sufficient to cover 3.6 months of future imports and enable the Government and the NBU to settle their foreign debt obligations and current operations.