According to the NBU, thanks to the efforts of partners, international reserves of Ukraine increased by almost 14% to 42.3 billion dollars in August.
Points of attention
- Ukraine's international reserves grew by almost 14% to $42.3 billion in August 2024, marking a significant increase driven by various factors including government receipts and debt repayments.
- Operations of the National Bank on the foreign exchange market played a crucial role in the surge of international reserves in August, with a net sale of currency totaling $2.7 billion.
- The record growth of Ukraine's international reserves in 2023, reaching $35.9 billion, reflects a notable increase and highlights the impact of receipts for the benefit of the government and payments for debt servicing.
- Receipts from partners, revaluation of financial instruments, and payments to international creditors such as the IMF contributed to the notable growth of Ukraine's international reserves in August 2024.
- The growth in international reserves positions Ukraine favorably in terms of financial stability and resilience, showcasing a positive outlook for the country's economy.
What is known about the growth of Ukraine's international reserves during August
The NBU noted that the growth of international reserves during August was contributed by:
Proceeds for the benefit of the government. 8,465,000 dollars were deposited into the government's currency accounts at the National Bank. USA, in particular:
4 billion 552.9 million dollars from the European Union within the framework of the Ukraine Facility instrument;
3 billion 899 million dollars from the World Bank.
Operations of the National Bank on the currency market of Ukraine. Thus, the NBU sold 2 billion 695.8 million dollars on the foreign exchange market. and bought back 0.3 million dollars to the reserves. Therefore, the net sale of currency by the NBU in August amounted to 2 billion 695.5 million dollars, decreasing by 18.4% compared to July.
The National Bank noted that USD 724.1 million was paid for servicing and repaying the state debt in foreign currency, of which:
service and repayment of the debt to the World Bank 266.0 million dollars;
payments related to the execution of transactions (OZDP) $239.9 million;
130.1 million dollars. — payments on government derivatives;
88.1 million dollars. — payment to other international creditors.
In addition, Ukraine paid 392.4 million dollars to the International Monetary Fund.
In August, due to revaluation, the value of financial instruments increased by 443.0 million dollars.
international reserves of Ukraine as of August 1, 2024 amounted to 37.23 billion US dollars, so they decreased by 1.8% in July.
What is known about the record growth of Ukraine's international reserves in 2023
According to the NBU, last year international reserves of Ukraine increased to 35.9 billion dollars. This volume is a record for the last 11 years.
The dynamics of international reserves were influenced by receipts for the benefit of the government and payments for servicing and repayment of the public debt.
Also, 1.3 billion came from the USA through the World Bank trust fund, the rest came from the placement of currency bonds of the domestic state loan.
