According to preliminary estimates of the National Bank of Ukraine (NBU), Ukraine’s international reserves in May decreased by 7.9%, or $3.4 billion, to $39 billion 033.8 million.
“This dynamics is due to the NBU’s foreign exchange interventions to ensure exchange rate stability and the country’s debt payments in foreign currency, which were partially offset by proceeds from the placement of foreign currency domestic government bonds (foreign currency government bonds) and from international partners,” the NBU website explained on Thursday.
Earlier, the Experts Club think tank and Maxim Urakin released a video analysis of the macroeconomy in Ukraine and globally, more detailed video analysis is available here – https://youtu.be/P_-qI9k9Xjc?si=nIQFriaWTYRqdvkU
The National Bank clarified that in April, its net sales of foreign currency amounted to $3.08 billion, which is 30.7% more than in the previous month: The NBU sold $3.09 billion in the foreign exchange market and bought back $11.1 million in reserves.
“This is due to the growth in demand in the foreign exchange market, primarily against the backdrop of increased government spending due to the rhythmic flow of foreign aid in March-April,” the central bank explained the dynamics.
In addition, the current volume of reserves was affected by revenues in favor of the government and payments for servicing and repaying public debt.
In May, $143.1 million was transferred to the foreign currency accounts of the Cabinet of Ministers, while $412.3 million was allocated for the servicing and repayment of the public debt.
It is noted that Ukraine also paid $240.8 million to the International Monetary Fund (IMF).
The central bank added that the volume of reserves was positively affected by the revaluation of financial instruments, adding $216.1 million.
“The current volume of international reserves provides financing for 5.1 months of future imports,” the regulator said.
As reported, Ukraine’s international reserves in April decreased by 3.1%, or $1.4 billion, after reaching a historic high of $43 billion 762.7 million in late March due to record external receipts of more than $9 billion for the month.
On April 25, the NBU raised its reserve forecast for the end of this year to $43.4 billion from $40.4 billion and to $44.3 billion from $42.1 billion at the end of next year.
Earlier, Experts Club and Maksym Urakin released a video analysis on the macroeconomy of Ukraine and the world in 2024, more detailed video analysis is available here – https://youtu.be/P_-qI9k9Xjc?si=nIQFriaWTYRqdvkU
