"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.
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