"Ukraine’s international reserves stood at USD 25.3718 billion (in the equivalent) as of 1 June 2020, according to preliminary data. In May, international reserves declined by 1.3%, but are close to where they started the year. The decrease in international reserves over the past month was primarily driven by the repayment of a significant part of this year’s public debt,” reads the statement.
In general, the following drivers determined how international reserves changed during the month.
First, government transactions to repay public debt. Ukraine paid a total USD 1,476.1 million (in the equivalent) to service and repay its public and publicly guaranteed FX debt. That includes USD 1,009.2 million in Eurobond repayments, USD 337.7 million in repayments on FX domestic government debt securities, and USD 60 million to repay the debt to the IMF. The remaining amount went to meet other commitments to international creditors. These international reserve outflows were partially offset by USD 418.8 million in new proceeds, including from the placement of USD 368.8 million of FX domestic government debt securities.
Second, the NBU’s transactions in the FX interbank market. The supply of foreign currency from businesses continued to surpass demand, enabling the NBU to buy back excess foreign currency and to replenish international reserves. In May, the NBU bought a total USD 660.6 million, and made no interventions to sell foreign currency.
Third, the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). These instruments gained an equivalent of USD 73.4 million in value last month.
International reserves now cover 4.4 months of future imports – sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions.
As Ukrinform reported, according to the NBU, Ukraine's international reserves in April 2020 grew by almost USD 0.8 billion, to USD 25.7 billion as of May 1.
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