Journalists drew attention to the fact that Ukraine's international reserves decreased by 4.6% in May and amounted to $44.5 billion as of June 1. As stated by the National Bank, the decrease in reserves was a result of the NBU's currency interventions and debt payments in foreign currency.
Points of attention
- Government transactions, including receiving funds from the EU and payments for servicing the public debt, have contributed to the fluctuations in Ukraine's international reserves.
- The NBU emphasizes the sufficiency of the current international reserves to maintain stability, despite the various factors impacting the reserve levels.
NBU commented on the situation with international reserves
The regulator draws attention to the fact that recent operations were only partially offset by proceeds from international partners and from the placement of foreign currency bonds of the domestic government loan.
Despite the decrease, the volume of international reserves is greater than at the beginning of the year and sufficient to maintain the stability of the foreign exchange market, the National Bank emphasizes.
In addition, it is indicated that the reduction in reserves was influenced by several factors at once.
First of all, we are talking about the NBU's operations on the foreign exchange market of Ukraine.
Thus, the regulator sold $2.962 billion on the foreign exchange market and bought $1.3 million into reserves.
Another factor is government revenues and payments for servicing and repaying the public debt. The government's foreign exchange accounts at the National Bank received $1.357 billion in May — from the European Union within the framework of the G7 ERA initiative and from the placement of foreign exchange government bonds.
It is also noted that $310.1 million was paid for servicing and repaying the state debt in foreign currency.
Moreover, Kyiv paid the IMF $296.3 million.
