NBU reveals structure of Ukraine's international reserves

NBU reveals structure of Ukraine's international reserves

Securities with the highest international rating make up 84% of Ukraine's total international reserves, the press service of the National Bank of Ukraine (NBU) has reported on Facebook.

"What is the structure of Ukraine's international reserves, which reached a seven-year high and amounted to $25.3 billion at the beginning of this year? To date, 84% of the reserves are placed in securities with the highest international rating (primarily U.S. AAA-rated government bonds), about 11% is stored in cash, deposits and funds in correspondent accounts with other central banks, as well as top-notch commercial banks, while the rest is monetary gold," the report said.

The NBU noted that such a structure of reserves is fully in line with world practice.

In managing the reserves, the NBU adheres to three key principles: reliability, liquidity, profitability.

"It [the NBU] increases international reserves in a favorable situation on the domestic foreign exchange market and analyzes trends in the world economy and places reserves in various reliable instruments (top-rated securities, monetary gold, etc.)," the report said.

Thanks to the NBU increasing international reserves in recent years, their volume is sufficient to make both current payments on sovereign debt in foreign currency and to conduct foreign exchange interventions in the interbank foreign exchange market to maintain price stability.

Ukraine's international reserves grew by 22% in 2019, to $25.3 billion. This amount of reserves reached a seven-year high - the higher amount was recorded in December 2012.


Let’s get started read our news at facebook messenger > > > Click here for subscribe

While citing and using any materials on the Internet, links to the website ukrinform.net not lower than the first paragraph are mandatory. In addition, citing the translated materials of foreign media outlets is possible only if there is a link to the website ukrinform.net and to the website of a foreign media outlet. Citing and using materials in offline media, mobile apps, Smart TV are allowed only with written permission from Ukrinform. News and publications marked as "Advertisement" and "PR" and articles in the section "Releases" include promoted content, and an advertiser is responsible for the content.

© 2015-2020 Ukrinform. All rights reserved.

Website design Studio Laconica

Extended searchHide extended search
By period: