According to preliminary estimates by the National Bank of Ukraine (NBU), Ukraine’s international reserves decreased by 8.1%, or $3.44 billion, to $38 billion 898.6 million in September.
“This dynamics is due to the NBU’s foreign exchange interventions to cover the structural deficit of foreign currency in the market and smooth out exchange rate fluctuations, as well as the country’s debt payments in foreign currency,” the central bank said on its website on Monday.
In September, the NBU’s net international reserves (NIR) decreased by $2.8 billion, or 9.9%, to $25 billion 544 million, which is lower than the quantitative performance criterion (QPC) in the updated EFF program of the International Monetary Fund (IMF), according to which Ukraine’s NIR should have been at least $28.8 billion at the end of September this year.
However, by the end of the year, this figure is expected to be at least $26.3 billion.
The NBU noted that foreign exchange interventions on the interbank market and debt payments were partially offset by proceeds from the placement of foreign currency domestic government bonds (DGBs), as well as international aid, the amount of which in September, according to the NBU, was one of the smallest since the beginning of this year.
“This once again demonstrated the irregularity of aid from international partners, which is typical for this year,” the central bank emphasized.
According to the published information, the National Bank sold $3 billion 213.8 million in the foreign exchange market and bought $0.6 million in reserves, while the NBU’s net sale of foreign currency in September increased to $3.21 billion from $2.68 billion.
It is noted that the government’s foreign currency accounts at the National Bank received $674.7 million, of which $603.6 million came from the placement of foreign currency government bonds, $60 million through the World Bank and $11.1 million from the Council of Europe Development Bank.
The government paid $552.4 million for servicing and repayment of the public debt in foreign currency, including $456.3 million for servicing and repayment of foreign currency domestic government bonds, $52.1 million for servicing and repayment of the debt to the World Bank, and $44 million for repayment to other international creditors.
In addition, Ukraine paid $729.8 million to the International Monetary Fund.
“In September, due to revaluation, the value of financial instruments increased by $381.8 million. The current volume of international reserves provides financing for 5.0 months of future imports,” the regulator stated in a statement.
