As of August 1, 2022, according to preliminary data, Ukraine’s international reserves amounted to $22.385 billion (in equivalent), which is 1.6% or $371.5 million less than at the beginning of July, the National Bank of Ukraine (NBU) said on Friday.
“They declined… given the National Bank’s interventions and payments on the state’s domestic foreign exchange obligations, which were largely offset by foreign currency borrowings in favor of the government,” the NBU said.
As reported, in June, the fall in reserves amounted to 9.3%, or $2.344 billion.
The regulator said that net international reserves last month fell by 2.9%, or $377 million, to $12.574 million, while in June they fell by 13.2%, or $1.97 billion.
The National Bank said that in July the pace of international reserves was affected by the sale of $2.117 billion by the NBU in the foreign exchange market, but at the same time, the purchase into reserves after the devaluation of the official rate on July 21 by 25% reached $922.0 million, which reduced the negative balance to $1.195 billion.
“From July 22 until the end of the month, a net supply of $40 million to $70 million per day was recorded daily on the interbank foreign exchange market,” the NBU said.
The NBU added that foreign currency receipts to the accounts of the government of Ukraine in the National Bank in July amounted to $1.563 billion, including $1.049 billion received from Germany, and $514.0 million from the placement of foreign currency domestic government bonds.
At the same time, the total volume of government payments for servicing and repaying public debt in foreign currency amounted to $677.0 million, including $630 million was sent to service and repay government bonds, and $47 million to settlements with other creditors.
“The current volume of international reserves provides for 3.5 months of Current External Payments (CXP), which is enough to meet the obligations of Ukraine and the current operations of the government and the National Bank,” the NBU said.
As reported, at the beginning of 2022, Ukraine’s international reserves amounted to $30.941 billion, net international reserves (NIR) were $20.767 billion.
