Ukraine’s International Reserves Posted a Y-o-Y increase of 36% in July

OREANDA-NEWS. Preliminary data suggests that as of 1 August 2016, Ukraine's international reserves amounted to the equivalent of USD 14.082 billion.    The stock of international reserves has kept climbing for a fourth consecutive month, posting a modest increase of USD 94 million in July.  Over the past 12 months, international reserves have expanded by 35.7%.

July’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 July, the NBU’s net FX purchases amounted to USD 257.8 million.  In July, the National Bank of Ukraine held no FX sales auctions.

USD 98.0 million in proceeds raised by the Government from the placement of domestic sovereign bonds 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 329.7 million, including USD 232.8 million in principal and 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.