As of May 1, 2023, Ukraine’s international reserves, according to preliminary data, amounted to $35,943.2 million. USA. This amount of reserves is a record for the last 11 years (a larger amount than the above was recorded in August 2011).
In April, reserves increased by 13% thanks to receipts from international partners against the backdrop of a further decrease in the volume of net sales of foreign currency by the National Bank and moderate debt payments of the country in foreign currency.
In general, during April 2023, the dynamics of international reserves was 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
USD 5,851.6 million was deposited into the government’s foreign currency accounts at the National Bank. USA. From this amount:
- 2,706.5 million dollars. USA – within limits the new IMF extended financing program;
- 1,652.5 million dollars. USA – macro-financial assistance from the EU;
- 1,250.0 million dollars. USA – from the United States (through the World Bank Trust Fund);
- 242.6 million dollars. USA – from the placement of currency bonds of the domestic government loan (OVDP).
The Government of Ukraine paid 446.0 million dollars for servicing and repayment of the state debt in foreign currency. USA, of which 282.7 million dollars. USA – for servicing and repayment of foreign currency bonds, USD 113.1 million. The USA owes to the World Bank, the rest owes to other international creditors.
In addition, Ukraine paid 107.4 million dollars to the International Monetary Fund. USA.
Second, operations of the National Bank on the currency market of Ukraine
In April 2023, the National Bank (according to balance sheet data) sold 1,374.1 million dollars on the foreign exchange market. USA and repurchased to reserves – 3.7 million dollars. USA. Therefore, the net sale of currency by the NBU last month decreased by $298.5 million compared to March 2023. USA – up to 1,370.4 million dollars. USA.
The volume of NBU interventions on the sale of foreign currency on the currency market of Ukraine has decreased for the fourth month in a row. Such dynamics in April are caused both by industry factors (decrease in energy imports, increase in the sale of currency for sowing, a certain intensification of the work of mining and metallurgical enterprises), and further limitation of unproductive capital outflow from Ukraine. In addition, the NBU’s consistent monetary policy, aimed at increasing the attractiveness of hryvnia assets, and the refusal to directly finance the budget deficit in 2023 contributed to the stabilization of exchange rate expectations.
Third, revaluation of financial instruments (due to changes in market value and exchange rates)
In April, due to revaluation, the value of financial instruments increased by 128.7 million dollars. USA.
The current volume of international reserves provides financing for 4.7 months of future imports
Data on international reserves and liquidity in foreign currency are compiled and published monthly:
- no later than the seventh day of the month following the reporting month – preliminary data;
- no later than the 21st day of the month following the reporting month – updated data.
Detailed data can be viewed at link.
Data on the volume of Ukraine’s international reserves, public debt management operations, as well as revaluation of financial instruments are given in equivalent to the US dollar.