Ukraine’s international reserves, according to preliminary data, increased by $1 billion 722.7 million, or 4.4%, in December after four months of decline to reach $40 billion 507.9 million, the second highest level in history after July 2023, the National Bank of Ukraine (NBU) said on Friday.
“They grew by 4.4% compared to November due to foreign exchange earnings from international partners, which exceeded the NBU’s net sale of foreign currency and the country’s debt payments in foreign currency,” the central bank explained the rapid growth of reserves.
It is specified that in general, in 2023, Ukraine’s international reserves increased by 42%, or $12.01 billion.
Net international reserves increased by $1 billion 167.5 million, or 4.3%, in December, and in general, over the past year, their growth was 54.9%, or $10.05 billion.
The National Bank noted that in December it sold $3 billion 559.1 million in the foreign exchange market and bought back $6.1 million in reserves, so its net sales amounted to $3.553 billion, up 1.4 times compared to November and slightly higher than in October ($3.34 billion).
“The growth of the NBU’s interventions in foreign currency sales last month was primarily due to the seasonal factor, in particular, due to increased budget spending at the end of the year,” the regulator said in a release.
At the same time, the government’s foreign currency accounts at the NBU received $5 billion 546.4 million last month, while $708.2 million was paid as part of the servicing and repayment of the public debt in foreign currency.
In addition, the value of financial instruments increased by $426.7 million as a result of revaluation in December.
“The current amount of international reserves provides financing for 5.4 months of future imports,” the National Bank said.
As reported, Ukraine’s international reserves decreased for the third consecutive month in November – by 0.5%, to $38 billion 785.2 million.
